Dáil Éireann Debate, Thursday - 23 November 2017
46. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Business, Enterprise and Innovation the steps she will take to counter the EU interpretation of the tax regime applicable to foreign direct investments here; and if she will make a statement on the matter. [49775/17]
Amharc ar fhreagraTaxation issues and related negotiations are the responsibility of the Minister for Finance and his Department. Having said that, I can confirm that Ireland’s system of corporate taxation stands up to scrutiny.
Ireland, as a founder member of the OECD, has been at the forefront of international tax reform. Ireland has been an early mover in implementing the OECD’s Base Erosion and Profit Shifting (BEPS) project and has participated fully in important reforms at EU level through the recent Anti-Tax Avoidance Directive. Ireland is a strong supporter of tax transparency and administrative cooperation, which are key to tackling the global problems of tax avoidance and aggressive tax planning.
International tax reform is complex and requires all countries to work together. The evidence shows that real reform is happening and delivering results, with an unprecedented level of consensus on a way forward and a demonstrable commitment to making it happen.
The Minister for Finance commissioned a review of Ireland’s Corporate Tax Code in Budget 2017, that report, published in September of this year, found no evidence that the Irish Corporate Tax Code provides preferential treatment to any taxpayer.
Further, in August of this year, Ireland was reviewed as part of the OECD’s “Global Forum on Transparency and Exchange of Information For Tax Purposes”, Ireland achieved a “fully compliant” rating and remains one of only 21 jurisdictions to achieve the top rating of being Compliant with all international tax transparency and exchange of information standards.
Whilst the pace of reform in International Tax is quickening, it is important to remember that from an EU perspective, tax remains a matter of Member State competence and unanimity is required before any proposals can be agreed. Ireland’s competitive tax rate of 12.5% and the transparency, reputation, certainty and consistency of our regime remain important factors in attracting FDI and these are not under threat.
It is also important to highlight that tax is only one aspect of Ireland's attractiveness for investment. Through our enterprise policies, we will continue to invest in ensuring that Ireland remains the best place to succeed in business. We will continue to place an emphasis on innovation, on creating attractive places throughout Ireland in which to work, invest and live, and on developing and attracting the talent needed for 21st century enterprise.
