International tax arrangements
Micheál Martin objects to taking the Ukraine and Dominica tax motions without discussion, citing international scrutiny of Ireland’s tax structure. The Taoiseach says the matters were debated in committee and that Ireland supports OECD action on base erosion and profit shifting.
It is not agreed. Again, the reason I am raising this is because it has not escaped our notice that there have been significant discussions in the US Senate about the Irish tax structure in so far as it relates to foreign direct investment, which is a key issue for employment creation in this country. There have been fairly lengthy discussions and debates, some very partisan, in the House of Commons in the UK in respect of our taxation structure. I am quite familiar with the practice of double taxation agreements with various countries across the globe, which are an essential part of our taxation structure. It appears, however, that the time has come for this House and Parliament to have a full debate on our taxation structure and full clarification of it, outlining in detail the degree to which the country complies with international tax norms and tax law and our basic strategy relating to corporate taxation and global movements, be they in the eurozone, the G20 or the international situation. We have not had such a debate in this Parliament for a very long time and it would be opportune if we could arrange one.
Comment on this
Both motions were taken at the committee last Thursday where there was an opportunity for debate on them. I can confirm to Deputy Martin that this is obviously a matter of great concern to everybody. Arising from comments made in the US Senate and Senate hearings, this matter was raised at the European Council meeting in the closing stages of our Presidency, which I attended. The European Council was very clear in its unanimous decision to work with the OECD on the action plan on base erosion and profit shifting, BEPS. Clearly, legislation has not moved as quickly as the digital world. It is not a case of Ireland standing out in front. It is a case of an international response to different jurisdictional conditions that apply. We are very happy to work with our colleagues in that regard. Deputy Martin will have seen the comments from the chief executive of the OECD confirming that Ireland is not a tax haven and that it is very happy to support that. I do not object to having a debate on it. These are two motions where there was an opportunity to discuss the matter at the committee. It did not happen. I am not objecting to this but it should be done at the appropriate time in the interests of clarity. We have no difficulty in that regard.