Joan Burton (Dublin West, Labour) | Oireachtas source

On reforms and the amendments before the House, Ireland as a country is now in a very difficult position.

We face an extremely uncertain Brexit and, at the same time, we are caught in the eye of an international storm concerning not only Irish tax practices but also the global tax practices of a number of companies that have significant operations in Ireland and achieve what might seem clever to many people, namely, the capacity to generate absolutely enormous revenue on a global scale and, by the utilisation around the globe of various tax stratagems and structures, to pay little or no tax, including in this country.

The essence of reform has to involve both individuals and companies paying their appropriate share of tax. Another speaker suggested it is possible to relieve practically everybody in the country of all forms of taxation. This is simply not possible. If, however, the State were to examine the various elements of its tax code, including PRSI, the USC, corporation taxes and employers’ contributions in respect of PRSI, it could, I have no doubt, come up with solutions over time that would enable us to achieve a fair system of taxation and not a system of zero taxation for particular people, as suggested by the previous speaker. I propose a fairer system of taxation that would allow people on incomes in Ireland, as earned by nurses, teachers, doctors and politicians, to contribute in a fair way and to make provision for their pensions, the health services they require and the education services their children require, be it at preschool, primary, secondary or third level. In that way, we would be able to provide for continuous growth in this economy that would be fair and balanced, with resources distributed in a way that would benefit the whole population. We have to be honest about this and state this means most people at work do have to contribute in taxation. They also contribute through indirect taxes and through taxation at other points in their lives.

What we have at present is a taxation system that has gone out of kilter. I have made a certain suggestion to the Minister on a number of occasions. I do not know whether he would have the courage to do what I propose, namely, establish a permanent standing commission on taxation, operating like the Law Reform Commission. It would review and examine loopholes, anomalies and instances of unfairness that arise in all tax codes from time to time. As we speak, I am sure there are some people at junior level in legal, tax and accountancy offices who have been delegated to listen to this debate, examine the Finance Act that arises from our deliberations and set to work, as in a game of chess, to create loopholes, backdoors, side doors, tunnels and alleyways in order that people will not have to pay their fair share of tax.

Last year at this time, I proposed to the Minister a review of people with offshore bank accounts, just as I proposed this to his predecessor, Deputy Noonan. In fairness to the current Minister, he agreed to have such a review. As with all of these trawls of evasion mechanisms, loopholes or tax planning arrangements, the investigation carried out produced, without very much difficulty, approximately €84 million on a first trawl. That was without examining all the accounts.

With regard to PRSI and the USC, when the ESRI first produced its proposals quite a few years ago — just before the crash, if my memory serves me correctly — it proposed a universal social benefit tax that would result in enhancements in pensions and would provide for people who might not have private company pensions or public service pensions. It would provide an income in addition to the public service pension paid by the Department of Employment Affairs and Social Protection. The crash came after Fianna Fáil collapsed the economy and the then Minister, Brian Lenihan, decided he would change the tax from a benefit tax to a universal social charge.

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