Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance) | Oireachtas source

I move amendment No. 69:

In page 45, between lines 25 and 26, to insert the following:

“22.Within three months of the passing of this Act, the Minister shall produce a report on the effective rate of corporation tax being paid across the country and the effect of the closing of tax loopholes would have on revenue.”.

I was hoping Deputy Barry would take up the mantle because I have to go shortly. I will make a brief point. This amendment is about loopholes and establishing a minimum effective corporate tax rate. We have rehearsed the argument at length. I believe, however, the argument the Minister makes is that if we did this, we would somehow endanger foreign multinational investment in this country. I do not believe that is true because they are paying such a low level of tax.

As I pointed out to the Minister the other day, even on the day Mr. Joe Biden was elected, Mr. Brendan Boyle, a Democrat congressman, was asked on national radio whether these multinational companies would leave if a little bit more tax was requested or levied on them. He said he did not believe so because they make so much profit here and Ireland is such an ideal location, particularly because of our trained and skilled workforce, our access to European markets and the fact we are English speaking.

Why would we not consider having a minimum effective corporate tax rate to address the clear and fairly brazen exploitation of loopholes, particularly in the areas of intangible assets and intra-group transactions. By the way, during the Committee Stage debate I was wrong to say that had changed in the layout of the revenue reliefs. It a bit hard to find online but just so we know, there was €16 billion in intra-group transactions relief. That is one loophole totalling €16 billion. That is the movement of profits to subsidiaries where they become costs for those companies, and through that mechanism they write down their tax bill, their taxable profits, to negligible levels.

I believe the Minister knows the argument. He knows our view of it but, surely, one way to make things a bit fairer, to get a significant additional tax contribution and to close off what is clearly an abuse, to some degree at least, would be to enforce a minimum effective corporate tax rate.

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