Eoghan Murphy (Dublin Bay South, Fine Gael) | Oireachtas source

I thank Deputies for their contributions to this important debate. I will address a number of issues raised on the floor of the House today. I welcome the support of Deputy Michael McGrath for the Revenue Commissioners who have been very clear that they gave no selective advantage and that the full amount of tax was charged in this case. I welcome the support for the appeal expressed by Deputies Michael McGrath and Brendan Howlin and many other Deputies. I also express my agreement with their point about the dual importance of attracting investment to Ireland and meeting the new international tax standards.

The Government is clear that an appeal is necessary for all the reasons that have been outlined. As the Minister said, an appeal is entirely consistent with a commitment to a fair and transparent tax system. Deputies Adams and Boyd Barrett have made the argument that there is nothing at stake here in terms of foreign direct investment. I would like to make it clear that Ireland's attractiveness for investors has been hard won and built up over 50 or more years. We should not be complacent. A core part of our attractiveness is that we offer stability and certainty.

Over the new few years, tax reform will bring significant change to international business. Many large employers are now making key strategic and long-term decisions about their future and we should not underestimate the need for Ireland to stay relevant in this changing environment. Deputies Catherine Murphy and Eamon Ryan and others have made some very strong remarks about Ireland being a tax haven. The OECD, the EU and our tax treaty partners do not regard Ireland as a tax haven. Declaring that Ireland is a tax haven is a baseless and fundamentally incorrect claim. Deputy Catherine Murphy further referenced the IFSC as a brass plate location. We are not a brass plate location. The Irish financial services, IFS, sector has been an important feature of Ireland's economy for close to 30 years and now employs over 38,000 people in 400 IFS companies in the State, 200 of which are Irish-owned. I also reject Deputy Boyd Barrett's inaccurate description of the knowledge development box, KDB, as a tax write-off. The KDB is designed to meet the OECD's tough new standards and is specifically focused on substantive research and development undertaken in Ireland.

Deputy Shortall asked whether there are other cases like that of Apple. No other companies are subject to this decision by the European Commission and we have already legislated to eliminate the so-called "stateless" structure. I acknowledge the comments made by Deputies Pearse Doherty and Stephen Donnelly about the proposed amendment to section 110. I assure them that, as stated yesterday, proposals relating to the use of funds in the Irish property market are being considered for inclusion in this year's finance Bill.

I note the comments from Deputies Howlin and Burton and others recommending the creation of an independent commission to examine tax loopholes and ensure that these loopholes are closed off at the earliest possible time. The Taxes Acts have extensive protections to prevent tax avoidance. These are strengthened on a regular basis to keep pace with any new threats to the tax base identified by the Revenue Commissioners or otherwise. When any loopholes are identified by the Revenue Commissioners, proposals are put forward for inclusion in the finance Bill at the earliest possible time. In addition, the Department undertakes regular reviews of tax expenditures and conducted a review of Ireland's corporation tax policy in 2014. However, the OECD BEPS process represents a step change which warrants a specific focused review. I believe the forthcoming expert review can sit comfortably alongside the ongoing practice of regular tax policy evaluation.

Deputy Burton referenced effective tax rates and noted the difference between headline and effective rates. I refer the Deputy to recent research done on behalf of the Department of Finance which showed that the effective corporate tax rate has averaged almost 11% over the period since 2003. While this percentage is lower than the 12.5% headline rate, it can be attributed to the availability of the small number of targeted tax measures available in Ireland such as the research and development tax credit which may lower the effective rate of corporation tax paid in Ireland.

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This motion seeks the support of the Dáil to appeal the European Commission decision and other important aspects of our corporation tax system. Our corporation tax code is founded on fairness, transparency, consistency and the rule of law. We have a proven track record in international tax reform and a matchless commitment to meeting the best international standards. For the Government there is a clear and pressing case for taking an appeal. As the Minister for Finance has already stated, we have done nothing wrong here. We compete for foreign direct investment from a position of legitimacy. I commend the motion to the House.

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