Joan Burton (Dublin West, Labour) | Oireachtas source

Luxembourg is one of the founding members of the European Union. Although it is much smaller than Ireland, it is very much aligned with Ireland on various small country issues, particularly on services and certain aspects around taxation. The Irish Examinerreported that the Prime Minister had commented on the 12.5% corporation tax rate in Ireland but also compared that with the 45% rate of tax on workers. In view of the changes in the economy it is difficult to see where tax structures are going.

Did the Taoiseach discuss tax policies in relation to small countries and, in particular, did he have any discussion around a minimum effective rate of tax? Headline rates are fine but if a corporation is allowed to avoid effectively all of the headline rates, it may end up having avoided paying any tax, as is the case with ten big companies in Ireland.

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