Oireachtas Joint and Select Committees

Thursday, 8 November 2018

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach

Finance Bill 2018: Committee Stage (Resumed)

10:00 am

Photo of Joan BurtonJoan Burton (Dublin West, Labour) | Oireachtas source

That was a fairly extensive commentary and one of the first that the Minister has made on this issue. It is useful that he has opened a conversation about digital tax. There is a need for a fresh report because since the previous report was issued there has been an enormous change in the landscape and in attitudes. The Minister is correct that certain countries have identified difficulties. Sweden, for example, has expressed concern about its gaming industry. That is true and I completely accept that point. However, it would be really helpful to this committee to get an updated report. As the Minister has said, departmental officials have all of the data and have been involved in all of the discussions and the conferences. I see no reason the information they have collected and of which they are aware, which has not been the subject of much commentary in the Irish media, would not be shared with us by way of a report, given the significant implications for this country. The approach proposed here is completely reasonable. Shying away from dealing with this will not do Ireland's case any favours. Obviously all of us here would seek to maximise the possibility of a fair and just taxation position for Ireland. Other European countries have historic advantages that we do not enjoy in the context of taxation issues. What we are seeking is tax fairness and justice in this area.

Why is the Minister refusing what is a completely reasonable and standard request for a report on an area of taxation that is changing? I am glad that the Minister gave the example of the UK because in his report, the Chancellor of the Exchequer, Mr. Hammond, indicated that within a number of years he would be expecting a net digital tax take of between £1.5 billion and £2 billion. As the Minister said, this is not an enormous sum, given the size of the British economy and I agree that in the context of the Irish economy, the sum involved could be a lot less. On the other hand, however, countries like Italy have been telling IT companies that unless they have a presence in Italy, then Italy will pursue Ireland with regard to earlier cases. Officials here today know the cases what I am referring to. I have asked many questions of the Minister and of Revenue with regard to back cases that are being pursued and the back payments that Ireland has made. Giving bland, brush-off answers does not serve Ireland or the Irish economy well.

Is it the Chairman's intention to take amendment No. 160 with the amendment relating to domicile? I just want to say something about-----

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