Michael D'Arcy (Wexford, Fine Gael) | Oireachtas source

The treaties are bilaterally agreed between two countries negotiating on equal footing. We seek to find the best deal that works for both parties and that has been consistent over the 74 tax treaties that we have to date. Each country is best placed to decide whether a treaty makes sense for it and what works best in its interest in a treaty.

Negotiations on the double taxation agreement with Ghana concluded before Ireland or Ghana's policy positions on measures contained in the multilateral convention had been finalised. As I stated, this started in 2014 and concluded in 2016. As a result, the signed double taxation agreement does not have the anti-base erosion and profit shifting, BEPS, measures contained in the multilateral convention. Ghana had not yet signed the multilateral convention. If it signs and ratifies it, the multilateral convention will modify the application of the existing double taxation agreement to bring it in line with the BEPS standards without any further action from Ireland being necessary. In addition, Ireland has contacted Ghana's competent authorities proposing a bilateral protocol to the double taxation agreement in case that is Ghana's preferred way to implement the anti-BEPS measures. If Ghana does not implement the multilateral convention, it can be done bilaterally between Ireland and Ghana.

All options are discussed and the final agreed treaty will have more or less the same UN-type provisions depending on what has been proposed by Ireland's treaty partners and the overall balance of the treaty itself. This may explain why treaties concluded with developing countries and within the same broad timescale often vary in the amount and type of UN provisions contained therein. A related factor is the treaty policy in the partner country. For example, Ireland's treaty with Ethiopia which was ratified in the Finance Act 2015 includes a provision on tax sparing which is a general feature of Ethiopia's tax treaty base and something that is found in most of that country's treaties, whereas a treaty with another developing country, Botswana, ratified in the previous year did not have a tax sparing provision. The treaty with Ghana before the committee today does not contain this provision either.

It is similar to Botswana but it is different from Ethiopia. I am trying to go through these as best I can for the Deputy. He has put a fairly substantial number of questions to me.

As to the Department's revenue spillover in 2015, there was a spillover analysis concluded in relation to this treaty, which was carried out before the treaty. The Department and the Revenue Commissioners were satisfied that there was not a significant spillover in relation to that. In the negotiations between both countries, there was not a request for favoured nation status. Both parties were satisfied to put it in as a favoured nation.