Dáil debates

Tuesday, 15 June 2021

Ceisteanna ar Sonraíodh Uain Dóibh - Priority Questions

International Agreements

8:05 pm

Photo of Pearse DohertyPearse Doherty (Donegal, Sinn Fein) | Oireachtas source

As I said in my earlier contribution, Sinn Féin supports the BEPS process and believes we should assert our own influence on it. Based on the formula proposed by the OECD, the Department of Finance estimated in January 2020 that this could reduce the State's corporation tax revenue by approximately €2 billion annually. However, the agreement announced by the G7 last Saturday arrived at a different formula, with market jurisdictions wielding taxing rights of over 20% of profits on earning margins above 10%. That differs from the OECD proposal upon which the Department's estimations of tax revenue were based. Can the Minister give us any projections regarding the impact of the G7 proposal on pillar 1, if it were to be implemented? Can he give us further detail on the number or range of companies that would be impacted? For example, under the other pillar, it is companies with an annual turnover of over €750 million. It has been reported that Amazon, with profit margins of 6% in 2020, could evade this measure. What is the Department's view on that?


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