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

I agree with the Deputy very much. There is a very strong and positive case for the impact of international investment in small open economies. There is also a very strong case to be made for legitimate tax competition. It is not only big economies that aspire to be competitive. Small and medium-sized economies also aspire to be competitive. Taxation policy is an important element in the competitive offering of smaller economies. It is not, however, the only part of our offering. Many other factors have played vital roles in allowing us to build up the degree of international investment here.

There is one matter to which I would like to draw the Deputy's attention. He is completely correct in saying that the United States of America cannot impose a settlement on the OECD, but through its global intangible low-taxed income, GILTI, provision, which the Deputy will be aware is a particular tax rate which applies to American companies that trade globally, the US has made policy decisions which affect the level of tax such companies pay on their global income. As the Deputy has said, it is in this regard that President Biden has brought forward his proposal. In and of itself, that is something which could have consequences for Ireland but, again, it has yet to go through the American political process. President Biden and his team will make their own domestic choices in that regard.