Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

I strongly disagree with Mr. Tang and take a very strong position against where the Government is in terms of Ireland's corporate tax rate. It is a matter I have raised over many years. For instance, many years ago, I and another member of this committee had argued in favour of bringing Apple before the committee. The Government, and some Opposition parties, refused to do so. We are very critical of how Ireland has facilitated tax avoidance at a global scale and how issues such as Apple have been facilitated by the Irish tax code. However, to dismiss the idea of tax sovereignty as though it does not actually mean anything, and merely ask states "how sovereign are you?", is nearly an argument for allowing Europe to decide not only the common base and consolidation but also the rate. One cannot cherry-pick tax sovereignty. What we are looking at here is a tax grab. This is a grab. I agree that there have been major scandals and that is why I am very critical of the Government because it has facilitated people across Europe, MEPs with their own views to which they are entitled, to use this opportunity created by Ireland facilitating mass tax avoidance - for which it has suffered huge reputational damage on a global scale - to try to put pressure on states to give up their tax sovereignty. That is what is happening here. It has been on the agenda for many years. If I was in Mr. Tang's position, I would feel the time was opportune because Ireland is weak. We still have a veto but our credibility is weak on this issue because of how we have dealt with Apple, the double Irish, stateless companies, section 110 companies and how - as seen in the last Finance Bill - we continue to allow Apple and other multinational companies to avail of allowances that result in an annual €850 million in forgone tax because we decided not to tax them appropriately.

I agree with that but this is a tax grab. It is about those who have seen an opportunity to move ahead in terms of federalisation or taking tax at a European level and using the opportunity provided by the scandals. Is that not the case?