Oireachtas Joint and Select Committees

Thursday, 25 January 2018

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach

Common Consolidated Corporate Tax Base: Discussion

9:00 am

Mr. Paul Tang:

I say the same in my country as I say here. There is no distinction. In my country, we steal tax base from other countries. I find this very disturbing. I do not understand this, because we are both part of a European Union. We can have our different political views, but the basis of European Union membership is that we are partners. One does not steal from one's partner. That has been the game up to now. That does not have to do with the 12.5% tax rate. That is not my main concern. My main concern is always that there is a possibility of constructions, and that the current corporate tax system is outdated. There are always opportunities to manipulate the location. The transfer pricing system is outdated. What is the transfer price or market price for intellectual property? What is the trademark of Coca-Cola worth? I do not know because there is no market, but that is the basis of transfer pricing. Ireland is working with a system that is outdated and refuses to have it repaired. That is why we came up with the European corporate tax system. It is not just that it is European. It is also the 21st century. It takes the system of apportionment, which deals with the transfer price.

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