Dáil Éireann Debate, Wednesday - 11 July 2018
72. Deputy Clare Daly asked the Minister for Finance if his attention has been drawn to the recent GUE/NGL report into efforts by a company (details supplied) to avoid and evade tax across Europe by using Irish tax loopholes; and if he will make a statement on the matter. [30928/18]
Amharc ar fhreagraI am aware of the recent report by the GUE/NGL group in the European Parliament.
As the Deputy is aware, I am not at liberty, nor is it appropriate for me, to discuss the tax affairs of individual companies.
I would first note that Revenue, as a statutorily independent body, monitors the tax affairs of taxpayers and takes a proactive approach to the identification of, and response to, non-compliance. In any particular circumstance, including the application of the tax legislation referred to in the report referenced by the Deputy, compliance with existing tax law is always a matter solely for Revenue.
I am aware that the report refers to a number of elements of Ireland’s Corporation Tax Code, including Section 291A, the Rand D Tax Credit, tax relief on foreign dividends, tax treaties and the overall effect these have on effective rates of tax.
I would note however that analysis undertaken by my Department, co-authored by an independent academic, and a report undertaken by the Comptroller and Auditor General (C&AG), confirm that the effective rate of tax paid by corporations in Ireland is between 10% and 11%. On the basis of this extensive analysis, I am satisfied that companies in Ireland are paying the appropriate rate of corporate tax on their profits generated in Ireland.
With regard to the payment of tax in other jurisdictions, such as across Europe, I recognise the importance of ensuring effective taxation of multinational companies and the need for internationally agreed solutions to counter aggressive tax planning. Ireland has fully engaged with international efforts to counter aggressive tax planning, through both the OECD’s BEPS project and the subsequent co-ordinated action at EU level leading to the agreement of the two Anti-Tax Avoidance Directives (ATADs). Work is ongoing in Ireland, and across Europe, to implement the agreed ATAD measures.
I should also add that my officials are currently finalising a roadmap setting out a clear programme of action in relation to Ireland’s Corporation Tax regime for the coming years having regard to developments at EU, OECD and the wider international level. This Roadmap follows on from the independent review of Ireland’s Corporation Tax Code conducted by Mr. Seamus Coffey, and will set out a comprehensive schedule of actions under way to action the Coffey recommendations, implement the remaining OECD BEPS recommendations and transpose the EU Anti-Tax Avoidance Directives. This Roadmap will be published in the coming weeks.
