Rose Conway-Walsh (Mayo, Sinn Fein) | Oireachtas source

I will speak to amendment No. 70, tabled by my colleague, Deputy Pearse Doherty. That amendment states:

The Minister shall, within six months of the passing of this Act, prepare and lay before Dáil Éireann a report on the two-pillar solution agreed by the OECD/G20 Inclusive Framework to address the tax challenges arising from the digitalisation of the economy, its impact on Exchequer revenue, its consequences for economic competitiveness, and options for a renewed industrial strategy in the context of this changing landscape.

The Minister knows that Sinn Féin has long called for the closing of loopholes and reliefs that certain funds, companies and investment vehicles have availed of and exploited to reduce their tax liability.

The Minister will know that Sinn Féin has long called for the closing of loopholes and reliefs that certain funds, companies and investment vehicles have availed of and exploited to reduce their tax liability. It is also our view that the facilitation of tax avoidance and aggressive tax planning by successive Governments has damaged the reputation of this State internationally and has undermined its ability to negotiate in discussions around international taxation. There is merit in amendment No. 24, put forward by Deputy Boyd Barrett, which is related to our own amendment.

Sinn Féin supports the two-pillar solution on international reform reached at the OECD, and its principles and objectives. Like every element of our tax code, we must make sure that this agreement, once implemented, is complied with by companies in scope. Our amendment calls for a report on the two-pillar solution agreed by the OECD G20 inclusive framework. This is crucial for several reasons. First, it will provide clarity on its operation and the number of enterprises in scope under both pillars. Second, we need an updated assessment of the impact of pillars 1 and 2 on Exchequer revenue. Previous estimates of a €2 billion reduction annually are out of date. The design of pillar 1 has changed, including the portion of residual profit above the 10% margin that will be allocated to market jurisdictions. The 15% provision under pillar 2 could result in an increase in corporate tax revenue in the medium term. We need up-to-date projections to inform public policy. This is an issue that my colleague, Deputy Doherty, has raised with the Minister at the committee. It is a piece of work that we believe the Department should undertake. Third, while we can remain competitive as a result of these changes, we can only do so if we address those factors that are just as crucial for investment in our economic competitiveness, including childcare, housing, research, development and education. In so many of these areas, we have fallen behind.