Pearse Doherty (Donegal South West, Sinn Fein) | Oireachtas source

The point Professor Stewart made was that the definition of tax residency runs to approximately 85 pages. The devil is, therefore, in the detail. Professor Stewart stated that Ireland should probably not move unilaterally.

Yesterday, at a meeting with multinational companies and major employers, one of their representatives informed me that Apple was at one end of the spectrum and it was at the other. I share that view. On the basis of the number of companies that pay corporation tax, we have experienced reputational damage. Do the witnesses agree that we have suffered reputational damage?

Professor Stewart noted the opinion that base erosion and profit shifting, BEPS, action plan will move us in a certain direction. Previous witnesses made a similar suggestion. We heard also that the impact of the BEPS action plan could be negative and result in a loss in revenue from corporation tax of €1 billion, which is 25% of the total. If a company is tax resident as a result of incorporation and does not do anything, it should be possible to capture many other taxes.

The Government has been behind the curve on this issue. Developments in Washington, London and the European Commission have not been good for Ireland's reputation. Irrespective of whether we like what is happening, we should fix our problems or at least be ahead of the curve. On the BEPS project, how should Ireland try to stay ahead of the curve to ensure revenue from corporation tax does not collapse? We have already experienced a building boom and bust. With corporation tax accounting for approximately €4 billion of annual tax revenue, we do not want to lose one quarter of this amount as a result of changes made at European level. I would like revenue from corporation tax, as opposed to the rate, to increase. How can we stay ahead of the curve? What issues should the sub-committee address?