Oireachtas Joint and Select Committees
Wednesday, 8 November 2017
Select Committee on Finance, Public Expenditure and Reform, and Taoiseach
Finance Bill 2017: Committee Stage (Resumed)
10:00 am
Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance) | Oireachtas source
That is not very credible because the parent company is deciding how much one subsidiary will charge the other for the use of the intellectual property. It may be the case that the profits then derive, as the Minister says, from that piece of intellectual property, but the parent company is deciding how much one charges the other and is setting the cost at precisely the level that is necessary to ensure that it pays no tax. That is what these companies are doing, and we all know it, so it is a tax avoidance strategy. As the Minister said, our tax code - I cannot remember the exact section - actually refers to not allowing, or prohibiting, things that are very obviously tax avoidance tactics. This, to my mind, is very obviously just that, and everyone knows it is, but we allow it. I do not see how the Minister can stand over it, frankly, but-----
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