Brian Stanley (Laois-Offaly, Sinn Fein) | Oireachtas source

We will pursue the matter further at that point.

The next category of correspondence is C, correspondence from and related to private individuals. No. 813C is dated 30 September and is a request to the committee from mise as our Chair to consider making inquiries with the Office of the Revenue Commissioners regarding the recent tax settlement with a company called Perrigo, which concerned the tax treatment of income arising from the sale of intellectual property. It has been reported that the settlement was agreed at €297 million. Revenue's original tax bill for Perrigo was €1.64 billion, which I understand was the largest tax bill ever issued by Revenue. The settlement represents a reduction of over €1.3 billion. To assist the committee in understanding the settlement, I propose that we write to the Office of the Revenue Commissioners to request a detailed note setting out the rationale for the settlement, how it was arrived at and how Revenue was satisfied to settle for €1.3 billion less than its initial assessment. While we understand that, for various reasons, Revenue might not be able to get 100% of a tax bill, this was a major write-off. Why did it settle for that? I also suggest that we write to the Tax Appeals Commission for its take on the matter, as it may have had a role in this.

To go from €1.64 billion to €297 million represents an 84% write-off for Perrigo. How did that come about? It was originally the largest tax bill in the State's history. The State is under the spotlight in terms of our corporation tax rates and collection rate. While progress is being made in that regard and, regardless of the fact that many of us do not like it, we will now be tied to a rate of 15% under the OECD's proposal, the question over what we are collecting is the greater issue. To go from €1.64 billion to less than €300 million is a major reduction by any standard. Many PAYE workers would love to have such a reduction. Does any member wish to comment on this matter or propose an action? I suggest that we write to Revenue and the Tax Appeals Commission.