Maureen O'Sullivan (Dublin Central, Independent)
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To ask the Tánaiste and Minister for Foreign Affairs and Trade in view of Ireland's very positive reputation in relation to Development Aid, if he sees a role for Ireland, or for Ireland through the EU, in ensuring there is no financial loss to developing countries through tax evasion or tax avoidance on the part of businesses working in developing countries in view of the fact that there have been reports of very significant losses to developing countries. [50251/12]

Eamon Gilmore (Dún Laoghaire, Labour)
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Efficient and fair tax systems in developing countries are essential for sustainable growth, poverty reduction and the provision of basic services. They are also vital for the promotion of good governance. Tax avoidance and evasion, therefore, present a major issue for developing countries seeking to drive their own development. Ireland is playing a strong role at national level and in global efforts to increase revenue generation and tackle tax avoidance and evasion in developing countries.

Support for the strengthening of government systems is an essential element of Ireland’s overseas aid programme. We also engage actively at the United Nations and in the OECD and the European Union on multilateral efforts to address tax evasion and avoidance. These include the promotion of the better exchange of information on tax matters between countries, the implementation of agreed standards on tax transparency and support for the capacity building of tax administrations in developing countries.

Work at EU level includes negotiation in Brussels on the current proposals for the revision of the EU transparency and accounting directives. The Government has been supportive of proposals to improve transparency among EU multinational companies involved in extractive and logging industries in developing countries. With Ireland's support, the European Union has adopted an action plan to support tax administration and reforms in developing countries. The Governments of developing countries increasingly want to take control of their own development and to end their reliance on aid. The uncertainty created by the global economic crisis has underpinned the realisation that fair and efficient taxation is chiefly the best means of meeting the revenue needs of developing countries. The formation of the African Taxation Administrators Forum by revenue authorities across Africa is playing an important role in advocating for reform and building capacity. Ireland is supporting this work through our aid programme. We will continue to support a more transparent global tax environment. Irish Aid, in co-operation with the Revenue Commissioners, will maintain our efforts to strengthen tax systems in developing countries so more resources can be made available for the fight to end extreme poverty and hunger.

Maureen O'Sullivan (Dublin Central, Independent)
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I acknowledge the work done by the Tánaiste to help Ireland achieve a seat on the UN Human Rights Council and I congratulate him on his success in that regard. The Joint Committee on Foreign Affairs and Trade, under the chairmanship of Deputy Breen, also played a part in this respect.

Eamon Gilmore (Dún Laoghaire, Labour)
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Yes, it did.

Maureen O'Sullivan (Dublin Central, Independent)
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When the committee met various ambassadors, the Chairman used the opportunity to look for their support. There is no doubt that our relationship with countries in Africa and other parts of the developing world has another dimension now that there is a trade element to it. While I accept what the Tánaiste said in his reply about the approach to illicit capital flight, I have to say it does not appear to be working. I have read reports suggesting that amounts between €116 billion and four or five times that amount have been lost as a result of illicit capital flight. I have read that the amount which has been lost is 20 times more than the amount which would be needed to meet all the millennium development goals in the countries of the developing world, which is a frightening statistic. Ireland could take a stronger stance on a number of points, for example by insisting on country-by-country auditing, scrutiny of double taxation agreements and the automatic sharing of tax information between countries. We could lead by example by insisting on the collection of the full rate of corporate tax in this country.

Eamon Gilmore (Dún Laoghaire, Labour)
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I thank the Deputy for her compliments in relation to Ireland's election to the UN Human Rights Council. When I attended yesterday's meeting of the Joint Committee on EU Affairs, I acknowledged the work of that committee, under the chairmanship of Deputy Hannigan, and the work of Joint Committee on Foreign Affairs and Trade, under the chairmanship of Deputy Breen. The members of both committees lobbied in support of Ireland's candidacy for membership of the UN Human Rights Council.

Ireland has a strong record on the promotion of good governance in tax principles. We are fully compliant with the EU code of conduct on harmful tax competition and the OECD standards on exchange of information. Ireland's network of more than 60 double taxation treaties compares favourably with the records of larger OECD countries. We have also signed tax information exchange agreements with 17 jurisdictions that were not previously co-operative. Ireland is on the OECD G20 white list of countries that are fully compliant with the OECD standards on exchange of information. Ireland also participates in the global forum on transparency and exchange of information for tax purposes. A favourable peer review of Ireland was undertaken last year. I am aware of some reports of tax avoidance and tax evasion in Africa. I want to affirm this Government's commitment to the fight against poverty in developing countries, with a particular emphasis on Africa. I assure the Deputy that we will continue to work at EU level, with the OECD and with the United Nations to ensure there is transparency in tax matters and to make certain that the problems associated with tax evasion and tax avoidance are addressed.

Maureen O'Sullivan (Dublin Central, Independent)
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The Tánaiste's remarks are very positive. However, I still think we can do far more. We can lead by example by dealing with this country's tax issues. The Tánaiste will be unable to attend an interesting conference in Malawi on the role of parliamentarians in stopping capital flight because it will coincide with budget day in this House, but perhaps he can look for the findings from that conference, which will deal with the specific issue I have raised today.

Eamon Gilmore (Dún Laoghaire, Labour)
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I will arrange to get a report on it. Obviously, we will not be represented at ministerial level at that conference because it is taking place on budget day. I will make it my business to get the papers from the conference.