Neale Richmond (Dublin Rathdown, Fine Gael) | Oireachtas source

I sincerely thank Deputy Collins for submitting this important Topical Issue. As this House is no doubt aware, Ireland is a full supporter of multilateralism and is committed to effective international tax co-operation through various forums including the aforementioned OECD and the UN. Ireland is contributing constructively to the process at the UN to develop a framework convention on international tax co-operation that embodies the principles of fairness, transparency and inclusivity for all member states. The new framework convention was first proposed by the G77 group of countries at the UN, following which the UN Secretary General published a report titled Promotion of Inclusive and Effective International Tax Co-Operation at the United Nations in August 2023 setting out three options on a potential future role for the UN in international tax co-operation - a multilateral convention on tax co-operation, a framework convention on international tax co-operation and a framework for international tax co-operation. As Deputy Collins has already alluded to, a vote at the UN in November 2023 saw developing countries vote for option two, a more binding framework convention, while developed countries favoured option three, a less binding framework. Ireland, together with our EU partners and many other developed countries, took this position given the important work nearing its conclusion by the OECD inclusive framework on the two-pillar solution to address the challenges brought about by the digitalisation of the economy. From our perspective it is critical that the emerging UN process does not undermine the OECD agreement as it enters its final phase before delivery. Ireland signed up to the OECD two-pillar solution in October 2021 and we intend to follow through on that commitment. Global implementation of the agreement is crucial to the stability of the international tax framework.

Work has now commenced on the development of terms of reference for this new framework convention at the UN in New York and Ireland is fully engaged in that process. Led by the OECD and the inclusive framework of 145 countries, huge progress has been made in recent years on reforming global tax rules, yielding increased transparency, action on base erosion and profit shifting, BEPS, and the two-pillar solution which is critical to making international tax arrangements fairer and work better in a digitalised and globalised world economy. It is important to recall that substantial progress has been made in relation to tackling aggressive tax planning over the past decade. We have seen the development and implementation of many rules to prevent mismatches in the international tax architecture, ensuring tax is paid in the correct location. These rules are complemented by a substantial and growing body of tax transparency rules providing tax administrations worldwide with the ability to fully enforce these rules. We recognise the important role the UN has to play in supporting and enhancing international tax co-operation globally and we look forward to developing a new role for the UN in the near future.

We believe that in progressing this work, it will be important to ensure that developments at the UN are as complementary and co-ordinated as possible with the ongoing critical work at the OECD, which is in its final stages and should be allowed to come to fruition rather than being undermined. Ireland is already an active participant at the UN, including on tax matters. The UN tax committee is comprised of 25 members, nominated by governments and selected by the UN Secretary General. The Minister for Finance nominated an independent tax expert from Ireland, who was selected by the UN Secretary General and sits on this important subcommittee of the UN's economic and social council and contributes to developing the UN's expertise in this area. The committee develops practical guidance for governments, tax administrations and taxpayers to help to strengthen tax systems with a view to mobilising financing for sustainable development. As indicated at the outset with regard to the ongoing process at the UN, we are fully engaged in working closely with colleagues at the UN and hope the process can result in a robust UN framework convention on international tax co-operation that embodies principles of fairness, transparency, inclusivity and effectiveness for all member states.

See this speech in context