Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I will make three points. First, I wish to state in the strongest terms that the changes I made in the previous Finance Bill to deal with this area were not influenced by any one company, nor was I approached on this matter by any one company. I am not suggesting that the Deputy is alleging that that is what motivated my action in this regard. Given the scale of this issue, however, it is very important to place on the record of the committee that the change I made in the previous Finance Bill was absolutely driven by my concern as to what is the appropriate tax policy for our entire economy and for an important aspect of our economy. The change I made was also driven by my understanding of what has happened in previous years and how important this area will be in the future.

Second, the tax structure of any company is a matter for the company. As I have said to the Deputy, it is very likely that many of the large international companies present in Ireland will continue to be present in our country, particularly if they have been here for quite a while.

It is also the case that I cannot influence or determine what their tax structure is going to be in the future because that is a matter for them. It is likely that there will be more stability around this area in the future but I cannot guarantee that, as the Deputy knows, nor am I going to do so.

I am not going to accept this amendment for the same reasons I have not accepted it in the past, and I have already outlined why I am not going to do so. As stated, this is going to be an area of increasing debate and scrutiny in the coming years because change is underway in this area. I made a commitment to the Oireachtas, reaffirmed during the debate on the budget, that we are going to examine the sustainability of corporate tax receipts into the future. This may be constrained a little because decisions are going to be made at OECD level, the shape of which will not be apparent until the end of next year. Perhaps a part of the terms of reference for that work could examine the contribution that intellectual property, IP, is going to make to corporate tax receipts in the future and what the fluctuations around this could be. That might be a way in which we can address at least some of the issues to which the Deputy refers.

I take this matter very seriously and am aware of the impact it has on our tax flows. I am also aware of the policy consequences that it has for Ireland. I am not diminishing the seriousness of the issue that the Deputy is raising, I just believe I have the balance right on this issue. However, I am happy to continue debate on this issue because it really matters.