Paul Murphy (Dublin South West, Solidarity) | Oireachtas source

I thank the MEPs for coming before the committee. It is good to have this engagement with our ECON MEPs. I wish to focus on the issue of digital taxation. I will start by putting the issue in a broader context because this definitely takes place in a broader context. There are two fundamental aspects to this broader context. The first is an increasing tension between the US and the EU. This is real, I think we can acknowledge it as such and it does play a part in the broader context.

The second is related but also has an independent dynamic. I refer to the moves on taxation that are taking place, including the CCCTB and the digital taxation proposals, both of which I am broadly supportive of. These point to the fact that, whether one likes it or not - and I do like it - the clock is ticking on Ireland's tax model, to be very neutral, or Ireland's tax haven model, to be descriptive, as I would be.

I have a few questions related to this general point for both MEPs. First, would they accept the point that, whether they agree with it or not, the global picture is changing to put Ireland's tax model into question, between what is happening in the US and in Europe and with Brexit? Second, would they agree with the description of Ireland's tax model as a tax haven, specifically a conduit tax haven, reflected by the fact that over 50% of royalty outflows from Ireland go to countries that are quite clearly tax havens. I refer to Bermuda and other such countries.