Ann Phelan (Carlow-Kilkenny, Labour) | Oireachtas source

I am also happy to have an opportunity to speak on this pertinent issue. There has been a great deal of commentary in the media in recent days after the CEO of Apple, Tim Cook, was grilled at the US Senate investigations committee. As my colleague, Deputy Dowds, has outlined in great detail, it appears that Apple negotiated a special rate of corporation tax - less than 2% over the last decade - with the Irish Government. It may be the case that possible tax revenues are escaping, but I have to say I am much more concerned about the reputational damage that has been done to Ireland across the world in recent days. I am a great believer in the process whereby perception becomes reality. In the international arena, on which we are reliant because we have to trade on our good name, Ireland is being perceived as a country that facilitates tax avoidance and is fast becoming stigmatised as a "tax haven".

I do not accept being attributed with such a title. Ireland has a long-standing record in its careful treatment of foreign investment firms. We have a solid, honourable reputation in the United States and Europe for inward investment. One wonders whether this is an attempt by the richest country in the world to recover tax from multinational corporations with US connections. However, to succeed in discrediting Apple worldwide would have huge implications, including very serious implications for Ireland and the economy we are trying to repair. There is no doubt we need to attain a much more structured and transparent way of tackling how tax residency is determined and managed in this country. From what I have viewed in recent days, Apple is not tax resident in Ireland or in the US, it is merely registered in this country.

I commend the Taoiseach and the EU leaders for pledging their commitment to intensify co-ordination of tax disclosure in an attempt to tackle issues such as this. It is a combined effort by all EU member states, not just by Ireland on the periphery. In doing so, it is imperative that we strengthen our management of tax residency. I look forward to the Minister's reply.

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