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

Photo of Pearse DohertyPearse Doherty (Donegal, Sinn Fein) | Oireachtas source

I appreciate Mr. Alain Lamassoure's opinions on that.

I have one final question. I am interested in their views of the perception of Ireland among their peers in the European Parliament and the committees in which they operate. Mr. Tang mentioned, and repeated, Ireland being a tax pirate. Is that view shared by his peers across the political divide in the committees in which he works? How is Ireland viewed as a result of some of the issues that have unfolded?

From my perspective, I am rooting for the European Commission in its appeal. I rarely do so. I am not only looking forward to having €13 billion of tax that should have been paid to us but note the view of the economist and chair of the fiscal council, which has an interesting blog out today.

He argues strongly that if the Court of Justice of the European Union finds in favour of the European Commission, not only will the €13 billion be due to us, there will be another €2.5 billion to €3 billion for every year since the structure that has been applied because it continues to be facilitated but should not be allowed under the Irish tax code. It is because the anti-avoidance measures within our tax code should have been used to prevent the creation of the structure in 2015 simply to reduce a tax liability which is black and white in the tax code. However, that is what Apple stated publicly after the Panama papers and the paradise papers came out. I go back to the original question. Is this a unique view that Mr .Tang holds or one he shares with his colleagues on Ireland's role in international tax affairs?

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