Dáil debates

Thursday, 23 November 2017

Finance Bill 2017: Report Stage (Resumed)

 

4:35 pm

Photo of Joan BurtonJoan Burton (Dublin West, Labour) | Oireachtas source

I commend Christian Aid and other development agencies such as Trócaire and Oxfam who have been working over a long period to develop tax justice in the developing world. They are working hard to ensure that taxes are collected, particularly in countries that are resource rich and whose main products are exported without processing. In many developing countries, between corruption and co-operation via various locations around the world, people are left in extreme poverty because there is no international will to address it. I worked in the developing world for a considerable period, specifically in eastern and southern Africa and I am a realist. I know that this can happen only through international co-operation over a long period of time. Organisations like Christian Aid have done sterling work in bringing to our attention the impact of tax agreements which were not designed with the developing world in mind but which have terrible consequences for people living in extreme poverty in a range of different countries. If we want the world economy to grow and people to prosper in Europe, Africa and Asia, then taxation is one of the issues that must be addressed but international organisations like the UN and the OECD are the only realistic way of doing it.

I would like the Government to think about this amendment again. The request here is for a report. What is threatening about a report? The aim is to address issues that many people in Ireland would deeply support, regardless of whether they are political. From that point of view, the Government should reconsider its position of extreme opposition to the idea that we would consider reports which set out what is happening in the context of issues that are very dear to the hearts of Irish people. Irish people want to see those countries which are struggling with extreme poverty helped.

Our development aid programme currently stands at more than €600 million, as the Minister is aware, and does excellent work. If he saw where the money goes, I think he would give some consideration to producing the report because it can only help us all to make better decisions and to find a way of helping countries to develop and meet the UN minimum development goals, provide schooling for girls, for example, help tackle malaria and so on.

In regard to the paper Christian Aid has produced, Ireland has to ask itself questions at this point, such are the rate and pace of developments at the moment in international tax, and such is the awareness globally, particularly in Europe, of some countries benefitting unfairly vis-à-visother countries. That includes us being taken advantage of, as well as cases where we are seeking tax advantages. In the context of Brexit, change is coming down the road, whether we like it or not, and it is going to be very difficult change. In recent replies to me on the double taxation agreements, the Minister and his officials have acknowledged that we have currently paid back approximately €600 million in taxes which are deemed recoverable in respect of Irish adjustments. The Italian Government is developing particular models that will be used to ensure that countries get minimum tax recovery in regard to activities broadly taking place in their jurisdiction. We also know that, in terms of the double taxation agreement and other arrangements that exist with India, claims that may be as high as €300 million are currently pretty much conceded, although the Minister could tell us more. Therefore, who are we fooling? Even yesterday, the British Tories, with many of whom Fine Gael has good relations, or more specifically, Philip Hammond, the Chancellor of the Exchequer, had a specific section in the budget speech dealing with digital taxation, which is also going to the address this issue.

What is wrong with providing a report? We should not even have to put down amendments about these reports. It is an insult to the idea of an open democracy. This information should be available. We should be able to make arrangements and have debates and discussion whereby we can grow our economy and have a fair taxation system but it should not be a case of beggar my neighbour.

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