Eamon Gilmore (Dún Laoghaire, Labour) | Oireachtas source

Efficient and fair tax systems in developing countries are essential for sustainable growth, poverty reduction and the provision of basic services. They are also vital for the promotion of good governance. Tax avoidance and evasion, therefore, present a major issue for developing countries seeking to drive their own development. Ireland is playing a strong role at national level and in global efforts to increase revenue generation and tackle tax avoidance and evasion in developing countries.

Support for the strengthening of government systems is an essential element of Ireland’s overseas aid programme. We also engage actively at the United Nations and in the OECD and the European Union on multilateral efforts to address tax evasion and avoidance. These include the promotion of the better exchange of information on tax matters between countries, the implementation of agreed standards on tax transparency and support for the capacity building of tax administrations in developing countries.

Work at EU level includes negotiation in Brussels on the current proposals for the revision of the EU transparency and accounting directives. The Government has been supportive of proposals to improve transparency among EU multinational companies involved in extractive and logging industries in developing countries. With Ireland's support, the European Union has adopted an action plan to support tax administration and reforms in developing countries. The Governments of developing countries increasingly want to take control of their own development and to end their reliance on aid. The uncertainty created by the global economic crisis has underpinned the realisation that fair and efficient taxation is chiefly the best means of meeting the revenue needs of developing countries. The formation of the African Taxation Administrators Forum by revenue authorities across Africa is playing an important role in advocating for reform and building capacity. Ireland is supporting this work through our aid programme. We will continue to support a more transparent global tax environment. Irish Aid, in co-operation with the Revenue Commissioners, will maintain our efforts to strengthen tax systems in developing countries so more resources can be made available for the fight to end extreme poverty and hunger.

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