Double Irish tax loophole
Deputy Kenny challenged the continuing impact of the double Irish tax arrangement and argued it had cost the State substantial revenue. The Taoiseach said company tax affairs are confidential and cautioned against assuming the quoted figures were correct.
I wish to raise an issue in the context of the Finance Bill, namely, the double Irish tax loophole. It was announced in 2015 that this loophole was to be closed to new companies. According to a publication last week, Google Ireland, which has until 2020 to continue using the same format because it was an existing company in 2015, paid €164 million in tax in 2016. But for the double Irish, it would have had to pay €1.1 billion, meaning that 85% of it was forgone.
In 2017, it paid €171 million. Were it not for the double Irish, it would have had to pay €1.6 billion. This means we are seeing a significant amount of tax forgone by these major multinational companies. Google is one example. There are numerous other companies in the same position. Hard-pressed workers feel they are overtaxed for the services they receive yet these corporations are getting away with significant tax breaks in the Finance Bill. Will the Government close the double Irish now for existing companies?
Comment on this
I will reply to Deputy Troy's question. I cannot speak to commitments that were given previously or locally but I can say that the Minister of State, Deputy Phelan, met officials this morning and raised the commercial rates Bill because it is priority legislation. I will ask him to correspond directly with Deputy Troy on the timelines for its publication and enactment.
Comment on this
With regard to the matter raised by Deputy Breathnach, I would also be happy to see that document published. I thought it had been published as an annexe to the withdrawal agreement but perhaps it has not been so I will double-check. As a UK-EU paper, it is not in our gift to publish it but I see no reason it should not be published. That information should be available to people in this House and the House of Commons as well, demonstrating the extent to which North-South co-operation and daily life between Northern Ireland and the Republic of Ireland are underpinned by European law.
The double Irish has been closed but there is a phase-out period, as Deputy Martin Kenny pointed out. That is in place for a good reason.