Dáil Éireann Debate, Tuesday - 21 July 2020
205. Deputy Ged Nash asked the Minister for Finance his views on reported plans of the European Commission to reduce multinational tax avoidance using Article 116 of the Treaty on the Functioning of the European Union; his further views on such measures to clamp down on multinational tax avoidance in his new role as President of the Eurogroup; and if he will make a statement on the matter. [16874/20]
Amharc ar fhreagraLegislative proposals in the field of taxation are brought forward on the basis of Articles 113 and 115, which require unanimous approval by Member States to be adopted.
Article 116 of the Treaty of the Functioning of the European Union provides that a legislative proposal may be agreed using the ordinary voting procedure if a difference between the provisions laid down by law, regulation or administrative action in Member States is distorting the conditions of competition in the internal market.
The Communications published last week by the European Commission represent the Commission’s ideas and ambitions in the area of taxation. One of the Communications noted the Commission's intention to explore the use of Article 116 in the context of taxation. No further detail has been given and no formal proposal has been made by the Commission.
The Programme for Government affirms that taxation is a national competence. I have always been clear in my position that unanimity is the appropriate voting system for any tax proposals at EU level.
As set out in the Programme for Government, Ireland recognises that international taxation policy needs to reflect a changing digital economy. It is my firm belief that this work is best done through the BEPS Inclusive Framework at the OECD and my officials and I are constructively engaged in that forum to seek to agree a long term, robust, sustainable international tax system.
The Eurogroup is the body through which Finance Ministers of the 19 Euro Area Member States take decisions on policy issues relating to management of the Euro Area economy. While taxation is not an area of competence of the Eurogroup, as Minister for Finance I will state that tackling tax avoidance is, and will continue to be, a priority.
