Kathryn Reilly (Sinn Fein) | Oireachtas source

I move recommendation No. 5:

In page 71, after line 36, to insert the following:

“35. The Minister shall, within nine months from the passing of this Act, prepare and lay before Dáil Éireann a report on the effective rates of corporation tax paid by companies in the State.”.

This obviously relates again to the discussion on country-by-country reporting. The basis for many of the changes is that Ireland has been regarded as an outlier in respect of corporation tax, which some people state has cost us dearly in respect of the amount of tax we should have been receiving for many years. While the changes that have been made are welcome, as is country-by-country reporting, when people such as the Trinity College academic Professor Jim Stewart, using information from the US Bureau of Economic Analysis, estimates the effective corporate tax rate paid by foreign firms is 2.2%, the damage caused by this shocks to the bone and affects people's human experiences.

I acknowledge the Minister of State has observed that a change from the agreed negotiated position would reduce the ability of that to function properly. While there is logic to that position, it would be important in this regard that public information be given and for this report on the effective rates of corporation tax to be provided. Some people would contest the figures that have been put forward. I believe the Minister previously has used a figure of 10.7% as being the effective rate but Members of the other House have contested some of the figures there. The introduction to some of the papers set out a broad spectrum of different effective rates, depending on how someone chooses to calculate it. However, it would be important to have a report on the effective rates of corporation tax, which would go a long way towards that issue of transparency. It is a highly topical issue that has been raised within recent months in particular.