James Lawless (Kildare North, Fianna Fail) | Oireachtas source

I was aware that there were efforts afoot at OECD level and, to a certain extent, at EU level in that regard. I understand EU officials have stated they will seek to press ahead with proposals for a digital tax on technology companies at the end of the year if the wider collection of 137 or more countries fails to get a multilateral deal from the OECD. My understanding is that the US withdrew from OECD talks earlier in the year. It may have rejoined, but my understanding is that it is out for the moment. That may change in November. In any event, it highlights the difficulties of securing a deal or agreement at OECD level. Pascal Saint-Amans, director of the OECD tax policy centre, stated that Ireland will suffer more than most countries if those efforts to secure a global digital tax agreement fail, triggering an international trade or tax war. I agree with the Minister that it would be destructive and politically and economically detrimental were those events to unfold, but we must be as proactive as possible in trying to prevent that. The Minister wishes for an accord at OECD level, as do all Members. He warned recently that the State could lose up to €2 billion of corporate tax revenue under those proposals or approximately 20% of our corporate tax rate. Tax sovereignty is an important issue. It underpins our approach to the Apple tax matter and many issues that are key to the health of our economy. What is our plan B?

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