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

That was the easy question. I will give both witnesses a hard one. First, there is an echo in what Mr. Hayes is saying about the digital tax, albeit it is not exactly the same thing, of the Government's approach to digital taxation, CCCTB and so on. The Government acknowledges that there is a problem and a danger of reputational damage and it has to be seen to do something. As such, it is in favour of something happening. Mr. Hayes goes on to make correct criticisms of the digital tax as it exists. If he is saying it should not just apply to tech companies but should also apply to BMW, for example, because a lot of that is digital, I agree with him 100%.

If the witness is saying it is not good enough for it just to be at a European Union level and it must be at an OECD level, I agree with him. It seems that he makes those criticisms not necessarily in order for those things to happen and for the process to be expanded to cover the car and other industries at an OECD level but as a way of kicking it to Never-never land, where it will simply never happen. The Government hides behind the base erosion and profit shifting, BEPS, process. It deliberately opted out of article 12 of the BEPS process and it goes on about it while avoiding signing up to measures at an EU level.