Ministers say Ireland has nothing to fear from OECD proposals
Government ministers insisted today that Ireland
had nothing to fear from OECD proposals to clampdown on multinational tax
avoidance.
Ireland has been at the centre of the storm over
multinational tax because of the aggressive tax strategies deployed here by
companies like Apple and Google.
Minister for Finance Michael
Noonan said Ireland has been actively involved in all aspects of
discussions on the OECD proposals.
He also said the Government agreed with the
OECD’s conclusion that the digital economy could not be separated from other
sectors for tax purposes.
“ Ireland in particular agrees with the
conclusion of the report on the digital economy that this sector should not be
ring-fenced from the economy as a whole,” he said.
Minister for Jobs, Enterprise and Innovation
Richard Bruton said the new proposals, heralded by many as the beginning of a
new era in international tax regulation, provided an opportunity for Ireland.
“ Ireland is fully engaged with this process. We
can gain from the opportunities that will arise from this.”
“I think our tax base will grow as businesses
move away from tax havens,” he added.
Last year at a US Senate sub-committee hearing
Ireland was singled out for tax arrangements which attract multinationals with
senators John McCain and Carl Levin claiming Ireland was a tax haven after it
emerged Apple paid taxes of 2 per cent on its foreign earnings in 2012.
The Government is examining the possibility of
changing certain contentious aspects of the State’s tax code, like the
so-called “Double Irish” scheme, in the upcoming budget.
Pascal Saint-Amans, the chief architect of
OECD’s tax proposals, urged Ireland to move sooner rather than later in closing
off loopholes associated with its corporate code.
However, Tánaiste Joan Burton indicated the
Government would not make any changes to the corporate tax regime until the end
of next year at the earliest.
While Ms Burton said the Government is fully
supportive of the OECD efforts to create a single set of international rules to
ensure large companies pay their fair share of tax, she indicated the Coalition
would wait for the OECD to finish its studies before making any changes.
Speaking at the conclusion of the Labour Party
think-in in Wexford, Ms Burton said she did not expect that to happen until the
end of 2015.
“The Government is fully supportive of the OECD
process,” she said. “That is not going to conclude until sometime, I think,
until the end of next year. We’re fully supportive. We’ve already made some
changes in the context of the Finance Bill this year.
“None of the budgetary issues or Finance Bill
issues at this stage have been decided but I would anticipate that we will work
with the OECD in the context of them completing their work on the study, which
would expect towards the end of 2015.”
Sinn Féin finance spokesman Pearse Doherty said
Ireland has nothing to fear from OECD moves on tax transparency and should
fully engage in the process.
“The world is moving towards a more transparent
global tax environment and Ireland should not be seen in any way to be
reluctant passengers in that journey and rather should be an agent for
delivering tax transparency,” he said.
Padraig Cronin, head of tax and legal services
at professional services group Deloitte, said: “There is no need for Ireland to
take unilateral action as a result of the papers issued by the OECD.”
“ The areas of interest from an Irish point of
view remain under discussion and will not be finalised until September 2015 at
the earliest. We need to remain vigilant and ensure we remain competitive as
this process continues to evolve,” he said.
Grant Thornton
tax partner Peter Vale
said the OECD proposals offered a “significant opportunity” for Ireland, in
that one of the key aims was to align taxable profits with substance.
“As multinational groups operating in Ireland
employ large numbers here, such groups will be incentivised to increase their
activities in Ireland, thus lending support to their existing tax structure,”
he said.
KPMG tax partner Anna Scally said: “Today’s
milestone in the BEPS project presents a strong foundation for Ireland to shape
its low tax environment into the future.”
“The next 15 months will see political consensus
on the parameters for international tax regimes. Ireland’s Government has
stated its policy commitment to remain competitive.”
h...