Pearse Doherty (Donegal, Sinn Fein)
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I have two other groups of questions. The first relates to what is being proposed in Italy by way of flat-rate taxes on sales from digital and online advertising. We know a group of countries is trying to move ahead with reform of taxation of the global giants. Ireland is resisting that because we are the beneficiary of taxes from Google and Facebook.

If I understand it properly, Italy is proposing that when a company buys an advertisement from Facebook or Google, a flat-rate tax will apply. It will amount to approximately 6% of the value of the sale. That amount will be withheld and paid to the Italian authorities. We know that the likes of France and Germany are looking at similar legislation.

I realise it is only one part of the picture, but it is a sizable part because it relates to the tech industry. Does that threaten in any way the sustainability of our tax base? If we cannot get that type of movement or co-operation in Europe, then individual countries can start introducing a withholding tax, which is what Italy is looking at and what other member states could possibly do. Therefore, the attractiveness of what we offer would somewhat diminish. Does Mr. Coffey have any concerns in that regard?