Colette Kelleher (Independent) | Oireachtas source

I move recommendation No. 9:

In page 71, between lines 33 and 34, to insert the following:

“(3) The Minister shall, within eight months of the passing of this Act, prepare and lay before the Houses of the Oireachtas a report in respect of the effective tax rate paid by companies in Ireland with recommendations to increase that effective tax rate including a consideration of the introduction of minimal effective tax rates.”.

I am moving this recommendation on behalf of my Civil Engagement colleague, Senator Alice-Mary Higgins. The Department of Finance report on effective tax rates of corporate tax in Ireland 2014 noted that our effective corporate tax rate was between 2.2% and 15.5% depending on which of the eight models was used. The effective tax rate is a better measure of the actual level of tax paid than the headline rate because it takes account of the existence of tax reliefs, credits and the differences in the taxable base.

It is really important that we get a report from the Minister on the effective tax rate paid by companies in Ireland. We saw with Apple that the effective tax rate could have been as low as 1%. Day after day, people from all sides of the House come in here and raise issues of concern such as halting sites that are fire traps, women waiting for months, even years, for gynaecology appointments in Cork or children going to bed in bed and breakfasts. The response we tend to get when we raise these issues is that there is not enough money, the budget is tied up or that our proposals are completely unaffordable. The reality is that these things are not unaffordable. We can build better halting sites, we can hire more doctors and consultants and we can build tens of thousands of the much needed social houses, but we have decided not to do so. These choices are made on the floor of this and the other House. We have decided that instead of investing in our people, we want to cut taxes.

The cuts to the USC in budget 2017 will cost us €335 million. Think of all the homes, hospitals and halting sites we could have built with that one tax cut alone. When it comes to corporate tax, we need clarity on the effective rate being paid so we can examine the choices on offer. We need guidance on how to increase the effective tax rate and consideration needs to be given to the introduction of a minimal effective tax rate to stop the repeat of the giveaways of 1%. That is why I urge Members of the House, both those in Government and those aspiring to Government, to support this sensible recommendation from Senator Higgins.