Gerry Adams (Louth, Sinn Fein) | Oireachtas source

I propose to concentrate on the way in which the tax regime here is being used by some multinational companies to avoid paying tax in countries in which they operate. The Taoiseach acknowledged that this issue was raised at the OECD meeting in February. It is another mark of the dysfunctional nature of the process of engagement in the House that we are dealing with questions dating from February.

In response to Teachta Martin, the Taoiseach stated that the corporation tax rate was not raised at the February meeting, which is welcome, and that this was a specific technical issue, which is more of a global problem than an Irish one. He also acknowledged that the issue was raised during his visit to California. The issue that captured the media headlines here and, I believe, in the United States, was the barbed joke made by California Governor, Jerry Brown, at an Enterprise Ireland event in San Francisco. The matter is, therefore, raised consistently.

I will outline some of the concerns that arise in this regard. At the end of September 2013, an Irish registered Google company had a revenue of €15.5 billion but paid only €17 million in corporation tax here. A US Senate hearing in Washington was also told that Apple had a special arrangement that provided a 2% tax rate and that one Irish registered subsidiary of the company had profits of €40 billion. The sums involved are substantial. The issue, which the Taoiseach described as technical, is that tax avoidance for multinational companies is facilitated through the funnelling of funds through this State into tax havens. I concur with the Taoiseach's previous comment that this State is not a tax haven. While his view is borne out, the fact that the money comes through Ireland means it is a matter of Irish tax law and enforcement in this State. I have other figures to hand but I am sure the Taoiseach has a sense of the issue in terms of royalties, licences and taxable profits that have been transferred out of the State.

This issue is pertinent not only to Ireland but also the developing world where people depend on corporation tax income to support vital public services. As the Taoiseach is aware, people are dying from hunger and experiencing poverty. I recall that last September, at a Clinton Global Initiative event in New York, the former US President, Bill Clinton, asked what major companies could do to support development in Africa. In response, Mo Ibrahim, a Sudanese-British mobile communications businessman and billionaire, argued that global companies should pay taxes in Africa and it was not acceptable that they do not do so. Ireland has issues in this regard in terms of State law.

The Taoiseach also referred to fairness. Where is the fairness in companies that make billions in Africa being able to funnel revenue through Ireland, thus avoiding tax in the country in which their wealth originates? Citizens, including Members of the Oireachtas, and small companies are correctly expected to pay tax, whereas multinational companies are being facilitated in avoiding paying tax. Sinn Féin's strong view is that the tax code must be organised in a fair and ethical manner.

The effect of this practice on the developing world means it is not merely a technical issue but an issue of tax justice. Surely Ireland cannot and should not be complicit in allowing money to be funnelled through this country in a manner that results in the developing world being robbed of income that could assist countries to emerge from poverty, save lives, prevent famine and be employed to promote economic growth and public services. I ask the Taoiseach to reflect on these points and respond.

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