Oireachtas Joint and Select Committees
Wednesday, 8 December 2021
Committee on Budgetary Oversight
Fiscal Assessment Report: Irish Fiscal Advisory Council
Pearse Doherty (Donegal, Sinn Fein)
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I appreciate that; it is helpful. My final question relates to corporation tax. Currently the budget is structured and the medium-term is structured on the basis that the changes at OECD level vis-à-vispillars 1 and 2 will mean a financial hit to the State of about €2 billion. We have been trying to pursue this with the Ministers for quite some time now, since the deal was struck because that number feels wrong. Pillar 2 will result in an increase in revenue to the State and pillar 1 was not as bad, from a fiscal point of view, as what was outlined at the start. Does the council believe the €2 billion figure is credible or could the number be lower? Could it even be neutral at the start? Obviously, we cannot predict changes in investment patterns and I am not asking the council to address that point. I am interested in what is agreed at the minute, bearing in mind that some of the finer detail on the carve-out is still up for discussion.