Joe McHugh (Donegal, Fine Gael) | Oireachtas source

Tá mé buíoch go bhfuil seans agam caint ar an díospóireacht thar a bheith tábhachtach seo, a bhaineann le postanna agus cuideachtaí ilnáisiúnta a choimeád agus postanna breise a fháil amach anseo.

I begin by echoing the comments of the Taoiseach and the Minister for Finance in saying I disagree profoundly with the Commission's decision alleging state aid to Apple. I welcome the Government's decision to recall the House today to discuss this important issue, which has an impact on Ireland's hard-won international reputation. Today is an opportunity for the Dáil to endorse the already significant work that this and the previous Government have taken in close co-ordination with other EU and OECD members to address the failings of the international tax system. This debate also provides the Dáil with a timely opportunity to voice our support of the Government's decision to appeal the case and reaffirm our commitment to measures that underpin the 187,000 jobs in IDA Ireland client companies, namely, the 12.5% corporation tax rate, the research and development tax credit and the knowledge development box.

In the past five years, this Government and its predecessor worked tirelessly to restore Ireland's international reputation. As Minister of State at the Department of Foreign Affairs and Trade, I am fully aware of the work of my Department in that regard. The decision by the Commission has led to negative references in national and international media on tax deals, and it is important that this is addressed fully. Ireland did not give favourable tax treatment to Apple, no state aid was provided and Ireland does not do deals with taxpayers. Moreover, it is important that international audiences understand the significant work that Ireland has already undertaken to address the failings of the international corporate tax system. Domestically, we have closed tax loopholes in successive budgets and Ireland was among the first countries in the world to implement country-by-country reporting in domestic law. Internationally, we have played an active role in global work to reform the international corporate tax system through both the OECD base erosion and profit shifting, BEPS, agenda and at EU level with the agreement of the anti-tax avoidance directive in June this year. It is through these co-ordinated international actions, accompanied by domestic implementation, that the failings of the international corporate tax system are best addressed.

As Minister of State with responsibility for international development, I am happy to say Ireland has also played an active role in ensuring that developing countries have a voice in these international discussions. Domestic resource mobilisation in developing countries will be central in implementing the ambitious agenda of the sustainable development goals in the coming years. Ireland's development policy, One World, One Future, recognises this and commits us to doing more on the issue of taxation and development. Since 2011, Ireland has contributed €500,000 to the OECD task force on tax and development programme to support greater engagement of developing countries in the BEPS project. We have also contributed €100,000 annually to the Africa Tax Administration Forum, which supports the development of tax administrations in Africa. In future, Ireland will increase funding to assist developing countries to collect appropriate and adequate tax revenues in order to reduce poverty.

I welcome the Commission's explicit statement that its decision does not call into question Ireland's general taxation system or its corporate tax rate. There is confirmation that no other companies are subject to its decision. Business operates on the basis of certainty and a stable corporate tax environment is a key part of Ireland's overall policy of attracting foreign direct investment in international start-ups, along with our youthful, well-educated, mobile, ambitious, adaptable and productive workforce and our pro-business environment. The decision by the Government to appeal the Commission's decision to the European courts is necessary to defend the integrity of our tax system and provide tax certainty to businesses that operate in Ireland.

I reaffirm my support for the Government motion. Appealing the Commission's decision is the right course of action. It is also important that the Dáil reaffirm its commitment to the measures that underpin jobs in IDA Ireland client companies, almost 3,000 of which are in my constituency in Donegal. To those who look to undermine Ireland's hard-won reputation, I point to the significant work already undertaken, both domestically and internationally to address the failings of the international corporate tax system. These challenges cannot be fixed by one country but rather by concerted actions by international partners in multilateral fora in which Ireland will continue to play an active role.

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