Thomas P. Broughan
Ceist:93. Deputy Thomas P. Broughan asked the Minister for Finance if he will report on the possible impact of the latest OECD proposal for digital transition on the economy. [43763/19]
Amharc ar fhreagraWednesday, 23 October 2019
Ceisteanna (93)
Freagraí scríofa
The OECD is currently undertaking a significant project to address the tax challenges arising from the digitalisation of the economy. The work is being divided across two Pillars – Pillar One and Pillar Two.
The work under ‘Pillar One’ focuses on the distribution of taxing rights in respect of highly digitalised activities and seeks to undertake a coherent review of the profit allocation and nexus rules used in the existing international tax framework. The work under 'Pillar Two' is examining the possibility of agreeing global rules on minimum effective taxation for corporate profits.
At this early stage it is not possible to estimate the potential impact of the implementation of any outcome which may eventually be agreed at the OECD. Technical working parties at the OECD are examining the various issues in detail and no decisions have yet been made. Work on estimating any potential impact is underway by my Department and the Revenue Commissioners and this work will continue to evolve as the proposal develops. Ultimately any impact will depend on the detail of whatever is actually agreed globally.
I recognise 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. There are a variety of views at the OECD table and the eventual outcome of the work will need to strike a balance to reflect these differing perspectives.