John Halligan (Waterford, Independent) | Oireachtas source

I was going to answer the Deputy's query in the Dáil. One of the things that would happen is that Revenue would examine this matter through tax queries. The responsibility would fall to Revenue. This is only my view but if that were to be the case - I cannot say that it will not be the case - and if a bigger company set up smaller subsidiaries or companies and they encouraged employment, productivity and a turnover, it would be very difficult for anyone in government to say he or she thinks this big company is setting up a couple of minnows so that it can claim tax. All that the Government and the Department could do on that would be to make sure that all relevant documentation and monetary evaluation of the larger company, and the smaller companies associated with it, would be dealt with by the Revenue Commissioners.

This legislation is due to be debated again on 29 March by which time Deputy Boyd Barrett may have tabled an amendment on this matter. The Revenue Commissioners can examine this matter through transfer pricing. Under EU legislation transfer pricing is illegal. It would be difficult under the present EU legislation for companies to do as the Deputy has suggested. I am not saying it is impossible, knowing how some companies could react. There is sufficient EU legislation to deal with this matter. There are measures associated with Revenue and the EU. We should be careful about this matter. How would we examine a mother company that may have set up three or four SMEs or three smaller companies to maybe benefit the mother company? Where would be bring in legislation to counteract such activity? How can we stop this happening if it is inevitable that these companies were going to create jobs and generate a turnover every year that would benefit an economy?

I take the point, but I do not know how this could be dealt with legally. I am not a legal expert. It might be worth the Deputy's while tabling an amendment in order that we could examine it.