Michael D'Arcy (Wexford, Fine Gael) | Oireachtas source

The sustainable development goals were adopted in 2015 by 193 UN members, including Ireland, and consist of 17 high-level goals and 196 targets. While not legally binding, both developed and developing countries are expected to take ownership and establish national frameworks for achieving the goals by 2030. A senior officials group led by the Department of Communications, Climate Action and Environment has been set up to oversee Ireland's implementation of the goals.

Double taxation agreements are widely regarded as critical pieces of fiscal infrastructure for developing substantial bilateral trading and investment opportunities by reducing tax impediments that might otherwise deter cross-border activity. In order to ensure that Irish business remains competitive and that Ireland remains an attractive destination for foreign direct investment, we have been expanding our double taxation agreement network. The agreement with Kazakhstan will bring to 73 the number of double taxation agreements that Ireland will have ratified once this Bill is enacted.

Double taxation agreements are bilateral in nature. No country is obliged or required to enter into such an agreement. They are agreements willingly entered into with a view to facilitating greater trade and investment between two countries by the elimination of double taxation on such cross-border trade and investment. The BEPS multilateral instrument will amend Ireland's tax treaties to add anti-avoidance clauses to ensure that treaties cannot be used for aggressive tax planning. This Bill begins the process of implementing this instrument and I hope to complete ratification during 2018. In negotiations for tax treaties with developing countries, Ireland use provisions from both the OECD and UN models. Negotiations for tax treaties are always held on an equal footing between both countries. A key objective during treaty negotiations is to end up with a treaty that both parties are satisfied with.

We are one of only two countries to commission an independent and comprehensive spillover analysis of the impacts of our tax system and tax treaties on developing countries. This report, published two years ago, shows that there is very little likelihood of spillovers from the Irish tax system negatively impacting developing countries. Where two treaties dating from the 1970s were found to be restrictive, these have been renegotiated and amended.

Taking these factors into account, and in view of the oversight role held by the Department of Communications, Climate Action and Environment in regard to the sustainable development goals, I cannot accept the Senator's recommendation.