Brian Hayes (Dublin South West, Fine Gael) | Oireachtas source

I understand the point the Deputy is making. It is complicated by the fact that "global capital is as global is", it can go anywhere. In spite of the best efforts of national governments to capture the full tax liability of large global entities like this, it is the view of Government that the best possible agreements are brought about at OECD level. I have spoken at OECD conferences. The new mandate of the OECD is trying to get better governance, tax compliance and trying to close down loopholes and get an even playing pitch across the world. It is a difficult task to achieve. Deputy Stanley makes the point that the full 12.5% rate does not apply. Without referring to individual businesses, some of the businesses can legitimately write off tax by conducting research and development, which is a crucial component of the development of their business in this country. We recognise that in the taxation code. I know the Minister for Finance announced in the 2013 budget that Ireland has become one of the first countries in the world to agree a new intergovernmental agreement with the United States on the US Foreign Account Tax Compliance Act, that is commonly know as FATCA. We have reached an early agreement with the US and this will be of benefit to Irish businesses. We are not discussing this today but we hope to raise it for consideration by this committee in the near future. That will be a key element of compliance, the issue the Deputy has raised. It is complicated by the ability of businesses and capital to transfer quickly from one country to another. We do not want to put ourselves at a disadvantage in any shape or form. One of the great advantages of our corporate tax rate - which has the support of all parties - is that it is clear, transparent, understood internationally and has political support. That creates a firm message for international businesses that come here, that they will be treated in an up-front way. Other countries hide the total tax liability of the corporate sector. We do not do that. The system is clear and open and is, I think, a key driver in terms of the decision of international companies to locate and create jobs in Ireland. Some 250,000 are employed in jobs that have been created directly or indirectly because of foreign direct investment out of a working population of 1.8 million people. We must keep that at the forefront of our mind in the circumstances that nearly 300,000 people have lost their jobs.