Mr. Brian Hayes:

Commissioner Moscovici proposed the measure in Buenos Aires when he was there for a G20 meeting. He came before the ECON committee and I questioned him on it. Mr. Tang and Mr. Lamassoure were also before the committee. In the two reports on the CCCTB that went before the European Parliament, the digital tax component was put in on the question of intangible assets. It is already the stated position of the Parliament that it wants this. However, it has no power in this area with the exception of putting up important signposts.

My sense is this. Two things happen with a year to go before the end of a European Parliament mandate. Proposals are put out there for the purposes of the legacy of a Commissioner and his or her future plans. The proposals can obtain general agreement in Council but I do not see a chance that the digital tax can be agreed in the lifetime of this Parliament's mandate or any time soon. I say that for two reasons. The recent comments of the new socialist German Finance Minister, Mr. Scholz, have been very interesting. He sees the implications for Germany, which has a highly export-orientated economy like our own, and he sees the issues of trade ramping up the difficulties with the Trump Administration, a matter to which my colleague referred. Without Germany and France pushing this, there will not be a quick decision.

The Commission constantly puts forward ideas and many of them take five years to come before the co-decision-making bodies of Parliament and the Council but they often remain on the shelves, and I think the digital tax is one such idea. However, I would not underestimate the political imperative to do something about this. As Deputy Michael McGrath said, internationally tax and accountancy are normally based on profit, residency and value added. If one moves to a sectoral approach and sets out to get the big digital companies with a nebulous turnover formula, one is changing the rules. Nevertheless, there is a political concern in large member states which get none of this income but who use the service. At some point, one has to ask how that is to be resolved. Our task as MEPs is not just to articulate Ireland's concerns but to explain other people's concerns to people here. The right approach is to stay around the table and try to work on a better and more proportionate proposal but I do not see this going anywhere fast.