Stephen Donnelly
Ceist:99. Deputy Stephen S. Donnelly asked the Minister for Finance if he has discussed the impact on Ireland and other EU member states of planned changes to taxation in the USA. [5421/18]
Amharc ar fhreagraTuesday, 27 March 2018
Ceisteanna (99)
Freagraí scríofa
As the Deputy is aware, US tax reform legislation was agreed shortly before Christmas last year. This is the most substantial change to the US tax code in 30 years. Companies and Governments around the world are now fully analysing what are very complex changes. Naturally, this is of great interest to Ireland given the large volume of US investment here. Consequently, my officials and our Embassy in the US, have been and continue to engage with business and others to fully understand the potential impacts of the changes in the US. We have also been engaging at EU level with other member states and the EU Commission on the implications for European trade with the US.
However, much of the detail of the proposed changes remains to be clarified in US IRS and Treasury Regulations yet to be published, and questions remain particularly regarding the compatibilitity of some aspects of the reforms with WTO rules and other international obligations.
I should mention that the US measures regarding deemed repatriation means that the United States is calling in its taxes. Companies will be required to pay hundreds of billions of dollars in tax liabilities, dating back to 1986. This is a vindication of what Ireland has been saying for many years. Though others have called on Ireland to claim these taxes, we have always been clear on what was Irish and what was not. Importantly, the deemed repatriation draws a line under the lingering controversy surrounding untaxed international profits.
While we remain alert and reponsive to any changes in the US and international tax environment, it is clear that Ireland’s access to the European market is, and will remain, a key factor in attracting FDI from the US and elsewhere. Global business, from the US or elsewhere, will always want to have operations in the EU, and Ireland will remain very competitive and attractive as an EU location to invest in and from which to do business.