Maureen O'Sullivan (Dublin Central, Independent)
Link to this: Individually | In context | Oireachtas source

73. To ask the Minister for Finance the reason Ireland will not support an international tax body under the auspices of the United Nations which has been identified as the better procedure in the interests of tax justice. [4140/18]

Maureen O'Sullivan (Dublin Central, Independent)
Link to this: Individually | In context | Oireachtas source

My question relates to the reason the Government will not support an international tax body under the auspices of the United Nations which has been identified as the better procedure in the interests of tax justice.

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Ireland is a strong supporter of international tax reform. In recent years the OECD has played the leading role in developing new, globally accepted international tax standards. To ensure all countries participate on an equal footing, the BEPS inclusive framework was established to lead global tax reform efforts. The framework has over 110 members from all over the world, including developing and developed countries. We expect the number to grow and it is a true global tax body. We are an active participant in its work.

As a result of the inclusive framework, the establishment of a new or replacement international tax body under the auspices of the United Nations is not necessary. While I note that there have been calls from civil society for a UN tax body, I believe such a body would take a significant amount of time to begin operations and lose the benefit of the huge experience and expertise of the OECD secretariat which facilitates the inclusive framework. It is unclear what benefit would be added by the replacement of the inclusive framework which has been remarkably successful with an entirely new body with identical aims and membership.

Separately, the platform for collaboration on tax has been established as a joint effort between the United Nations, the OECD, the IMF and the World Bank to provide an opportunity to build on progress made to date and further enhance co-operation between countries on tax matters. The platform has a particular focus on developing countries and taxation.

The United Nations does play a role in tax, both in these international bodies and developing its version of OECD standards which may be more suitable for developing countries in some circumstances. One example is the UN model tax convention. When negotiating with developing countries on tax treaties, Ireland is always willing to include elements from the UN model that are requested by a treaty partner country.

Maureen O'Sullivan (Dublin Central, Independent)
Link to this: Individually | In context | Oireachtas source

I thank the Minister. This question follows on from my contribution during Leaders' Questions last week which the Minister attended on the issue of tax justice. I asked about the way in which tax injustice was contributing to inequality in our society and other countries. The Minister was at Davos at the summit which was about the fractured world in which we were living. Central to the process is getting the tax justice piece right. Does the Minister take on board what some of the reputable organisations such as Oxfam, Christian Aid and Trocaire have stated in their reports about Ireland and its role as part of Tax Justice Network Ireland. Following the OECD model, it appears that the voices of developing countries are not given the same credence and credibility as those of developed countries because the bias certainly appears to be in favour of developed countries, whereas the UN model gives them a much more equal and credible role to play. Will the Minister consider the exchange of information treaties rather than what we have seen?

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I do not accept the analysis put forward by some organisations which described Ireland as a tax haven. Ireland does not meet any of the criteria as laid down by the OECD to be described as a haven. I have said I will meet Christian Aid to have a discussion with it because while I disagree with it, I am in favour of debate and dialogue. I intend to meet it in the coming week.

On the second question on the exchange of information, we have signed up to the legal framework for the exchange of information between tax authorities on who is paying what in tax and where and a new multilateral body through the auspices of the United Nations. As I said, I do not support it being set up. In the current geopolitical environment trying to set up a new multilateral body or develop the role of the United Nations in this area could prove very challenging. The OECD, with over 110 members, offers the best way of addressing the issue to which the Deputy referred.

Maureen O'Sullivan (Dublin Central, Independent)
Link to this: Individually | In context | Oireachtas source

It is very good to be open to discussion with organisations. I imagine they will want to continue on the work from the spillover analysis because, as I said last week, there is evidence that international tax advisers are advising their clients on opportunities to use Ireland as a conduit in precisely the ways in which the spillover analysis of two years ago stated could not possibly be used. It is linked with the point on fairness. Our reputation is considerable when it comes to our relationship with developing countries. We are very much respected. Unless we get the position on tax right, we will undermine that reputation. The national plan for human rights and business has finally arrived and it is all about policy coherence. It is welcome that the Minister is to meet Christian Aid to have a frank discussion on these matters.

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

As I said, I disagree with the assessment the organisations have offered, but I still think it is a good idea to meet to have a discussion and I intend to do so some time in February. I have outlined the reasons I think the chances of the United Nations expanding its power in this area are low. I certainly do not think we should put our efforts into setting up a new multilateral body on a global basis to deal with taxation, given that it could take years to do so and that we have the OECD in place.

My final point concerns the balancing act I have to perform. I have to deliver tax reform in areas where it is needed, but if I were to put forward any change in corporate tax policy which undermined the predictability of corporate tax, then, given the contribution it makes to the retention of jobs in this country, I would be castigated.