Simon Coveney (Cork South Central, Fine Gael) | Oireachtas source

I will try to do the same. The Minister for Finance, Deputy Donohoe, has consistently stated that further change to the international tax framework is necessary to ensure we reach a stable global consensus for how and where companies should be taxed. Change is coming to the international tax system. The ongoing work at the OECD will result in further substantial alterations to the international tax architecture. The challenge before us is to build a global and robust tax architecture that works for all into the future. As part of this work the OECD secretariat has published a consultation paper this week on its proposals. The paper outlines a potential approach for making changes to the international corporate tax system. These changes would be designed to reflect the changing nature of where profits are generated in the modern digitised economy. Ireland welcomes the launch of this publication. It is important that all interested parties are able to contribute to this important work.

Ireland is actively involved in this ongoing work at the OECD to reach a global consensus on addressing the tax challenges of digitisation. Much work remains to be done before an agreement can be reached at the OECD. I note some speculation today on the potential impact on Ireland of any changes. It is far too early at this stage in the process to work out the revenue implications for different countries. These issues are discussed in the fiscal vulnerabilities paper published with the budget on Tuesday. As the Minister for Finance said in his Budget Statement earlier this week, it is in the interests of Ireland and all countries that this work is successful at ensuring the continuation of a stable and consensus-based international tax framework into the future. Ireland will continue to engage in this work at the OECD as well as taking actions domestically in line with the corporate tax roadmap.

The point the Deputy O'Sullivan made is that we need to try to have a level playing field in respect of tax rules and transparency through the OECD. I agree with that. We have always had an issue with the EU going alone in this regard because of what is happening in other parts of the world. If we can build consensus, and if Ireland can be part of designing it, that is our clear preference in terms of tax reform into the future.

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