Bernard Durkan (Kildare North, Fine Gael) | Oireachtas source

I will make a few comments about this issue, which has engaged the House and public representatives for some considerable time. At the outset, like everybody else, I am totally in favour of ensuring that the national and international regime regarding taxation of companies, be they indigenous or foreign, applies. We all agree that whatever provisions apply in the country should apply to each without exception.

There is a danger, however, that we are wandering into another debate - the one President Trump and others are generating - which seems to be pointed at companies that have invested in this country, in other words, foreign direct investment. The suggestion appears to be that this country must collect the taxes on the profits earned in other jurisdictions of companies that have headquarters here. That is totally outside anybody's business except the business of the country in which the profits were made. If we move in that direction and start to soften our stance on that we will eventually find ourselves with no foreign direct investment because no foreign direct investment company will want to be put in a position where, by investing in this country, it must then collect taxes on the profits it earns in third countries, some of which have a laissez-faireattitude to taxation in general. It would be very misleading for us to jump on the band wagon without knowing what is on the band wagon. It is hugely important that we iterate that we expect the profits that accrue from all foreign direct investment in this country are taxed in accordance with our taxation rules, which in terms of corporation profits tax is 12.5%. It has been suggested again and again that 12.5% is not paid here and that some under the counter deal is done. The Revenue Commissioners have reiterated that the 12.5% rate applies. We either believe somebody or we do not. Either the Revenue Commissioners are doing their job or they are not. If we are suggesting in the House that all of that is a fudge, which is a topical issue nowadays, there can be no fudge about that. They either do or they do not and we need clarification if that is not the case. That does not take away from the fact that all companies, in increasing their investments and upgrading their technology or whatever the case may be are entitled to tax concessions on foot of that. Otherwise, there would be no expansion of companies. They would stay in one spot and there would be no further development.

It is important from our point of view that we are absolutely clear that foreign direct investors and indigenous investors are to be treated alike. There should be no difference. In so far as taxation is concerned, it should and must apply only to the profits earned in this jurisdiction. To do other than that is simply opening the gate to create a situation whereby this country will become an unfriendly site in which to invest. That will be to the satisfaction of some international begrudgers who appear from time to time. I am sure they have no personal interest of their own but we need to ensure we protect our national interest in this situation. We need to underscore on every occasion that in the current highly competitive international market we must remember that we are our own friends and we can expect nothing from anybody except what we do ourselves and what we fight for and try to maintain. I know the Minister is aware of it already but this is not a simple situation and it is not a case of one-way traffic.

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