Dáil Éireann Debate, Tuesday - 7 July 2020
196. Deputy Ged Nash asked the Minister for Finance his plans to move to a more sustainable tax environment as stated in the programme for Government in view of potential international corporation and digital tax changes; and if he will make a statement on the matter. [14592/20]
Amharc ar fhreagra213. Deputy Ged Nash asked the Minister for Finance his plans to implement the Roadmap on Corporation Tax Reform; and if he will make a statement on the matter. [14609/20]
Amharc ar fhreagraI propose to take Questions Nos. 196 and 213 together.
In September 2018 my Department published Ireland's Corporation Tax Roadmap. This Roadmap set out the progress made at that time, and the direction in which we would go, towards ensuring that Ireland's corporation tax regime remained appropriate in order to support economic growth and prosperity.
Significant actions have been taken on foot on the Roadmap including the introduction of Controlled Foreign Company rules, amendments to Ireland’s exit tax rules, the quick ratification of the BEPS Multilateral Instrument. Most recently, Finance Act 2019 introduced new anti-hybrid mismatch rules in line with our commitments under the Anti-Tax Avoidance Directive, and reformed our transfer pricing provisions ensuring they comply with OECD standards.
The Programme for Government reaffirms our commitment to the 12.5% corporation tax rate. It also confirms that this Government will continue both to implement the Corporation Tax Roadmap and to engage constructively on international tax reform through the OECD process.
As set out in the Programme for Government, this Government recognises that taxation policy needs to reflect a changing digital economy. This work is best done through the OECD, as opposed to unilateral measures that could undermine trade. Ireland remains actively involved in that important work at the OECD on addressing the tax challenges arising from the digitalisation of the economy.
I intend, later this year, to publish an update on Ireland's Corporation Tax Roadmap. This update will reflect on the significant progress we have made and consider what future actions may be needed to ensure Ireland's tax system meets international standards. It will also provide an opportunity to reflect on the evolving international tax environment and the important work that continues at the OECD.
