Ms Michelle Murphy:

As we are proposing a minimum effective rate, it would not affect the headline rate. This minimum effective rate would take into account the various loopholes and write-offs companies can use. There is a variety of reports with a variety of figures. One will have a certain lobby group claiming it pays a certain proportion of tax. We have European Commission and OECD investigations into this issue, as well as some modelling by us. We argue that an effective rate of 6% would bring in up to €1 billion. What really needs to be done is the creation of an evidential base by the Department of Finance and the Revenue Commissioners. One could then look at the rates paid and the benefits the companies were getting through various loopholes which are being examined in the BEPS, base erosion and profit shifting, process. One can also look at the other benefits these companies get through having an educated workforce and infrastructural provision through office blocks from NAMA at knock-down rates. We are providing a lot for these companies.

Those on the lowest incomes have actually lost the most throughout the crisis. Our position has always been that those who benefit most from our economic system should contribute the most. A minimum effective rate of 6% does not seem to be untoward that the corporate sector would be expected to pay.