Alice-Mary Higgins (Independent) | Oireachtas source

This amendment builds on the discussion we had with the Minister of State on the OECD and the base erosion and profit shifting, BEPS, on Committee Stage. This is a somewhat wider amendment, however. I am asking that within 12 months of the passing of this Act - and I remind the Minister of State that he can agree to the action even if he does not agree to the amendment - the Minister would lay before both Houses of the Oireachtas a report on the impact and use of the provisions in this Act, specifically the investment limited partnerships for tax avoidance and the impact, if any, on the Revenue Commissioners.

We know that many millions of euro are lost each year globally due to tax avoidance. We discussed this on the previous Stage. There is a real concern around the lobbying on this Bill, as we have heard. Unfortunately, between Committee and Report Stages, we still have not received a copy of the lobbying documents that were sent concerning this Bill. There is one thing we know about certain groups because it is in the public domain. For example, the Maples Group law firm, which is one of the largest offshore legal firms in the world with two offices in Dublin, has publicly stated its aim to establish parallel European structures to its pre-existing Delaware or Cayman Islands funds for distribution to European investors via the alternative investment fund managers directive passport and that Ireland might be the location for that. We know the reputation of the Cayman Islands, for example, when it comes to tax avoidance is very poor and we know Ireland has been working extremely hard over a number of years to try to avoid getting a negative reputation when it comes to tax avoidance and to the question of whether Ireland is to be identified as a tax haven. I am concerned that the provisions and the kind of product and funds that will be set up by the Bill will do damage to Ireland's reputation. A lot of the international interest in these funds is not necessarily for investment in Ireland but it is in Ireland as a place where international asset investments can be sold to EU investors, be they individual or corporate. Many of the products they sell will not necessarily be Irish investments and it would be wrong to give that impression. In many cases, in fact, they may be investments in property and other assets that are based around the world. Some of those properties and investments in other assets will be listed and located in countries and spaces that are recognised as centres for tax avoidance or as tax havens. It is a real concern that this Bill will damage Ireland's reputation and that the products and activities that take place under this Bill will damage Ireland's reputation when it comes to tax avoidance and to the question of supporting activities or linking us to activities in recognised tax havens. The concern about this is particularly acute, given that at EU level, there is a new focus on tax policy and transparency.

That is why I suggest it would be a constructive, positive and advisable step to accept my amendment and to ensure we can address any potential damage to public perception and address any concerns on the impact these would have. I would hope this would allay those concerns but it would certainly address them if we ensured there would be a report within 12 months, or if it needs to be 18 months, I am happy to take that suggestion from the Minister of State, which will look at exactly how these investment limited partnerships are being used. Are they being used for tax avoidance, either in Ireland or abroad and what impact are they having on the Revenue Commissioners? I limit my suggested report to the impact on our Revenue Commissioners but I am concerned that we would also address the impact they may be having on the collection of revenue in other countries, including in developing countries, which have been so badly hit by practices of tax avoidance internationally.

I urge the Minister of State to recognise that there is a danger, be it in reality or in perception, with these suite of new products in the lack of clarity we have had on the lobbying basis behind them that has been seeking them and so forth. The Minister of State could address those concerns by ensuring we have a proper review process. I know the Minister of State has mentioned the BEPS process in the Committee Stage debate but we may need to have a specific and targeted report looking specifically at these investment limited partnerships, as set out by this Bill.