Oireachtas Joint and Select Committees

Wednesday, 10 November 2021

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach

Corporation Tax Issues and General Scheme of the Central Bank (Individual Accountability Framework) Bill 2021: Minister for Finance

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

I acknowledge it is a very significant moment. The European Commission will be bringing forward a directive regarding this change. The reason it will do that is that most of the changes that have been made through the OECD base erosion and profit shifting, BEPS, process have been implemented via a directive. We will have to consider that directive carefully when it is published and I anticipate it will be published at the end of December. I am well aware of the precedent and consequences of that approach, which is why the engagement I had on this agreement was not only with the OECD but with the European Commission regarding my confidence the directive would look to implement the OECD agreement, and that is it.

The Deputy was right to say that, as it moves forward, it will move forward in ECOFIN and operate on the basis of unanimity. It is worth acknowledging a benefit of this agreement being implemented via directive is that it must be consistently implemented across all the European Union. If we are in a situation where we want to have confidence that nobody is undercutting a rate we are faithfully implementing, then implementation via a directive has a benefit in managing that concern. However, I will be scrutinising that directive very carefully when it comes forward and I expect it to be published at the end of December.

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