Dáil Éireann Debate, Wednesday - 17 April 2019
82. Deputy Michael McGrath asked the Minister for Finance when the OECD will bring forward its conclusions on potential digital tax reforms; the level of consultation there has been with the OECD in relation to digital tax and related corporation tax matters; and if he will make a statement on the matter. [17769/19]
Amharc ar fhreagraThe Deputy will be aware that the OECD are carrying out further work on the reform of the international tax system to address the tax challenges arising from increasing digitalisation.
There are two broad pillars to this work being discussed at the OECD. A first group of proposals advocate the need to reallocate a proportion of profits, and thus taxation rights, towards different concepts of value creation, including the value generated by having a presence in a market jurisdiction. The second group of proposals are asking whether there are remaining concerns about base erosion and profit shifting that should be addressed by common global minimum taxation rules.
A public consultation was held by the OECD in March which provided an opportunity for a wide range of stakeholders to contribute to the debate. There was considerable interest in the public consultation with approximately 250 responses received by the OECD. A detailed work plan is now being developed by the OECD to be brought before the BEPS Inclusive Framework in May 2019 for agreement. This in turn will be presented to G20 Finance Ministers in June 2019 for approval. It is expected that this workplan will request that the OECD's technical Working Groups further develop the proposals over the next 18 months with a view to reaching final agreement by end 2020.
I have consistently recognised that further change to the international tax framework is necessary to ensure that we reach a stable global consensus for how and where companies should be taxed. A certain, stable, and globally agreed international tax framework is vital to facilitate cross border trade and investment. I remain convinced that the OECD BEPS Inclusive Framework, where over 120 countries work together on an equal footing, is the correct forum for this work to be carried out.
There are a variety of views at the OECD table and the eventual outcome will need to strike a balance to reflect these differing interests. It is in Ireland's interest that an agreement is eventually reached to ensure the continuation of a stable, consensus based international tax framework which is vital to facilitate cross-border trade and investment.
