John Lahart
Ceist:71. Deputy John Lahart asked the Minister for Finance if he will report on his discussions on corporate taxation. [44787/21]
Amharc ar fhreagraTuesday, 21 September 2021
Ceisteanna (71)
Freagraí scríofa
The OECD Inclusive Framework has reached agreement, but not consensus, on key aspects of the two-pillar solution to address tax challenges arising from the digitalisation and globalisation. It is important to note that there are several critical issues to be resolved, including in respect to the proposed minimum effective tax rate.
I have been clear that I am broadly supportive of the agreement but I have a reservation, in particular, in respect to a commitment in the July interim agreement to a rate of ‘at least 15%’ for a global minimum effective tax rate. The process must bring about certainty and there are too many unknowns currently.
It is also the case that while Ireland is among a number of countries who have reservations on key issues such as the rate, others have expressed reservations on critical issues such as;
- the proportion of the reallocation of profits under Pillar One,
- on how any agreement will be consistently implemented,
- on the roll-back of unilateral measures such as digital services taxes,
- and, importantly also on the very ambitious implementation timeframes.
I have consistently said that we want to be part of the agreement at OECD. However, any agreement must bring certainty and stability, and currently there is a lack of clarity on what is in the agreement.
Given the economic importance of the OECD proposals to Ireland, I held a public consultation on the proposals, which ran until 10th September with submissions received from a broad range of interested stakeholders. These submissions are under consideration by my Department.
Discussions are continuing at the OECD with the objective of finalising key aspects of the agreement in October and we are fully committed to that process. The next key date in this process is expected to be the 8th of October when the OECD's Inclusive Framework will next meet.
I remain optimistic that an agreement can be reached which meets the needs of all countries and I can assure you that Ireland will continue to constructively engage in the further discussions and technical work.