Paschal Donohoe (Dublin Central, Fine Gael)
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I thank the Deputy for the argument he has put forward. I note his acknowledgement of the degree of change that we have made. My view is that our tax treatment of intellectual assets is appropriate. It recognises the value of these assets and the contribution that they can make to economy, and also the need for us to tax them effectively and fairly.

On the issue regarding the €722 million, I will give some context to the committee regarding my position that there is potential for that money to be accessed. Earlier, I used the word "theoretical". I take the Deputy's point that it is more than theory. I used that adjective because I believe this figure does not have the solidity of others that we have debated in this committee.

I will outline the background to the adjective I have used. The figure of €722 million, a vast amount for the State, is arrived at by taking the figure for all capital allowances on intangible allowances claimed in 2015, which amounts to €28.9 billion, assuming that 20% of this would have been restricted, which gives a figure of €5.77 billion, resulting in additional corporate tax of 12.5%. This, in turn, gives the figure of €722 million. That is the flow that gets to that figure. It is important to note, however, that the figure of €28.9 billion is the total amount of capital allowances for intangible assets that were claimed as available in 2015. This does not necessarily mean that the allowances were used to offset relevant income in that year. Where, due to the insufficiency of relevant income in the year of claim, the capital allowances are not fully utilised, the unused allowances may be carried forward and used against relevant income in the subsequent period. Furthermore, this calculation also assumes that the cap would have been relevant to all claimants, that is, that the income generated by qualifying assets was less than 125% of the available allowance in that year. Where the income generated is greater than 125% of the available assets, a restriction of 80% of qualifying income would still allow full relief for the available allowances. To put some context on the figure of €722 million, a number of assumptions mean that the figure does not have the absolute robustness of other figures we debate in the committee.

I refer to the Deputy's point, which is important, as to whether we can assume the structures that underpin our current tax flows will still be operational in a number of years. Given the change that has taken place in the past, it is fair to question whether we can be certain that the present tax structures in Ireland will continue into the future. Looking at the work under way at OECD level and the fact that we must now be so aware of changes taking place in our jurisdictions, I believe it is more likely that, first, the companies present in Ireland will continue to be present in the future and, second, that the structures leading to their being taxed in the way they are being taxed at present will continue in the future. The truth, however, is that I cannot give the Deputy a guarantee of that. I still believe, however, that the way in which we tax these assets gets the balance right between the need for change and certainty for now and into the future. It will not surprise the Deputy that it is for this reason I believe the change we have made gets the balance right. I emphasise again to the committee, however, that my belief is that as we move into 2020 the intersection between our tax code and the work taking place at OECD level will become more and more prominent. If the Deputy or the committee wants me to do further work to aid his or the committee's understanding of this issue, beyond the disagreement we have, I will do that.