Seán Crowe (Dublin South West, Sinn Fein) | Oireachtas source

I noted from the Taoiseach's speech that this week's European Council meeting will discuss tax policy with a particular focus on tax collection and combatting tax evasion and fraud. As other speakers have said, it is a timely discussion. This topic has been discussed with multinationals in parliaments in other European states and the US and some of the findings have been disturbing with tax evasion and Ireland being linked in more than one parliament committee hearing. According to Herman Van Rompuy, a staggering €1 trillion is lost to tax evasion every year in EU member states. This is seven times' the entire annual budget of the EU. I heard the Taoiseach dispute reports by the US Congress concerning Apple. Today would have been an ideal opportunity to rubbish or respond to those charges that have been in the media over the weekend.

In the UK last week, the House of Commons Public Accounts Committee struggled to understand how Google could have a large sales staff in Britain operating to sales targets and receiving commission as a large part of their income and yet pay next to no tax on sales of about €4.7 billion there. Like people in the UK, people in Ireland and other EU countries are asking how this can happen. We were told that Google was able to do that because of our supposedly lax and light-touch tax regime. Although this State has avoided being labelled a tax haven by international bodies such as the OECD, some academics and high profile economists believe that we are - without the obvious benefits of Caribbean weather.

It seems that we are operating two very different tax systems, one for big multinational corporations and a second more onerous system for smaller companies and individuals. This is not a fair system of commerce and is undoubtedly hurting our domestic economy. It is also hurting PAYE workers, many of whom already feel that the tax system is unfair, unjust and puts the heavy burden on low and middle income workers. SMEs are finding it increasingly difficult to set up or continue business in Ireland due to the high costs they incur and they cannot avail of these lavish schemes. This is contributing to our stagnant economy and keeping unemployment currently at 14%. PAYE workers are also bearing the brunt of tax increases and social spending cuts that this Government has implemented, yet wealthy influential corporations are able to escape without paying their fair share through loopholes or other tax avoidance measures.

Investments from multinational corporations in Ireland have provided much for the State in terms of job creation and payroll taxes and these jobs must be protected. However, our corporation tax is low by international standards and cannot be undermined further. This whole issue is about protecting the fairness and credibility of our tax system. People want to see this in respect of these major companies as well.

The Taoiseach needs to ensure that the sacrifices of honest taxpayers who are struggling to make ends meet are not propping up these global giants. Europe and Ireland must pursue a new global system where multinationals publish their revenues, profits and other key corporate information which would be useful to revenue authorities in each country in which they are based and operate. Will the Taoiseach argue that it should be made a legal requirement for multinationals operating in Ireland and the EU to disclose details of any tax avoidance schemes they are using globally at this European Council meeting? All EU countries need to improve their tax collection efficiency and tackle tax evasion and fraud because it is ordinary workers and their families who are paying for the shortfall in revenue.

We know that this also impacts on developing countries. Many of these countries have massive resources but people living in dire poverty are gaining little benefit because of tax dodgers and blatant corruption. Tax evasion and avoidance and transfer pricing cost developing countries billions, if not trillions, of euros every year. Efficient and fair tax systems in developing countries are essential components for sustainable growth, poverty reduction and the provision of basic services.

Multinational companies should be required to declare the tax and other payments that they make to governments in all countries in which they operate. Will the Taoiseach also raise this issue at the Council meeting and take the opportunity to rubbish or address many of the claims that have been made in parliaments not only in Europe, but in the US, over the past few days?

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