Joan Collins (Dublin South Central, Independents 4 Change) | Oireachtas source

Okay. I was just about to look for a deferment.

I am raising Ireland's position on establishing the United Nations framework convention on international tax co-operation. Last month, at a statement in Paris urging EU countries to support the new UN framework convention on international tax co-operation, we learned that global tax abuse will cost the EU €1 trillion over the next ten years. This follows a landslide majority in last November's UN General Assembly vote on a resolution for the framework convention. The framework would represent the most ambitious attempt so far to create an inclusive and equal global tax policy and directly target the hundreds of billions lost to tax evasion each year. Most EU countries voted against it. Most developed countries voted against it. Ireland voted against it.

Tax Justice Network research estimates that approximately $480 billion tax was lost in 2023 due to cross-border tax abuse by multinational companies and by individuals hiding assets and income streams offshore. It estimated that Ireland accounted for 4.1% of this total tax loss inflicted globally, even though we only account for 0.06% of the world's population. That is an impact 70 times greater than our population would suggest. Last October, in advance of the vote on the convention, I raised this issue in the Dáil. The Minister, Deputy Michael McGrath, avoided giving a position on the resolution and said the Government would continue to engage with the process and looked forward to seeing the ultimate outcome. The ultimate outcome was that Ireland voted against the resolution. Not only that, but Ireland pushed for the committee set up after the resolution to take decisions based on a consensus and not majority basis, which shows we have still not stopped trying to stymie a fairer and stronger global tax policy.

In October, the Minister said that it would be important to ensure developments at the UN are as complementary and co-ordinated as possible with ongoing work at the OECD, and do not undermine or duplicate the ongoing work. Almost all OECD members are part of the 48 countries that voted against the UN resolution. Those 48 countries represent 15% of the world's population and are estimated to enable 75% of global tax abuse. Developed countries, including Ireland, facilitate the majority of global tax evasion. That is what this framework convention would seek to address. Our Government voted against it. This tax convention would take the power over global tax policy away from those countries who cause the majority of it and spread it out to those most hurt by it. It makes no sense to me to give the countries committing the most global tax abuse almost sole control over the global policy that polices it.

The UN Secretary General, António Guterres, concluded in his extensive report on global tax policy that analysis of existing international tax arrangements indicates that they do not satisfy the main elements for fully inclusive and most effective international tax co-operation. He also found that the substantive rules through these OECD initiatives often do not adequately address the needs and priorities of developing countries. The Government must surely agree with this conclusion. In February the UN's economic, social and cultural rights committee published a report calling on Ireland to strengthen measures to stop tax abuse. Tax Justice Network research estimates that Ireland accounts for 3.5% of corporate tax abuse and annually inflicts almost €11 billion of corporate tax abuse on other countries. The UN committee also found that Ireland has played a central role in some of the most egregious and high-profile tax avoidance structures in the world, and it is often poorer countries that lose out. We need to seriously rethink our position on this. I would like to hear the Minister of State's comments.

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