Mr. John Hogan:

We are going to continue seeing an increase in the coming time. In recent years, the Department has tried to moderate expectations about what that might mean for the future. We have been consistent in identifying the potential risk. This risk was evident to us on a number of bases. First, was there the potential for continuation against the background of expectations in the industry? Second, could there be an economic shock? We have seen a shock unfolding before our eyes in recent months.

There has also been a fundamental discussion at international level through the OECD around the rewriting of international tax rules. The committee is well aware that that discussion surrounded two elements, namely, the minimum effective tax rate and the idea of the reallocation of taxing rights to other jurisdictions. Given that Ireland is at the centre of a multinational sector, we have been identifying that, over time, there could be a cost to us associated with those changes. That cost is interesting. Ireland has traded over recent years, in particular around our corporation tax policy, on the basis of three principles, those being certainty, predictability and stability. This has served us well in our ability to allow multinationals to locate here. Even though we have seen the potential of it costing us money, especially around the pillar 1 discussions at the OECD, we are willing to pay that price in terms of then having predictability, stability and continuity in the international tax framework.