Jennifer Carroll MacNeill (Dún Laoghaire, Fine Gael) | Oireachtas source

The proposed recommendation attempts to create a link between the Irish corporation tax system, on the one hand, and human rights and welfare, including child welfare in the global south, on the other. These are distinct policy considerations. I will address reform, and the extensive work in recent years the Department of Finance has undertaken to update the Irish corporate tax system, much of which is included in this Bill in terms of the OECD's base erosion and profit shifting project, of which we have been supporters since its inception. Most of those actions have been relevant for the interaction of Ireland's tax system with other jurisdictions, including developing countries. They are, of course, considered in detail in the update on Ireland's Corporation Tax Roadmap, which was published in 2021.

Ireland has been a committed participant in the OECD's BEPS project since its inception. Ireland was one of the first countries to sign and ratify the then BEPS multilateral instrument. This ground-breaking international agreement significantly reduces the potential for tax treaties to be used for tax avoidance purposes.

Our commitment to transparency and the exchange of information has received international commendation. Indeed, Ireland is one of a small handful of jurisdictions worldwide to be twice recognised as fully compliant with all international best practice by the OECD-led Global Forum on Transparency and Exchange of Information for Tax Purposes.

We are a leader in tax transparency at both OECD and EU level. We have negotiated, agreed and implemented significant new tax rules on tax transparency to ensure tax authorities have access to tax rulings, anti-money laundering information, country-by-country reports, and the mandatory disclosure of tax planning agreements by tax advisers and digital platforms. We signed up to the OECD's two-pillar solution to address the tax challenges arising from the digitalisation of the economy in October 2021 and we are already delivering on that commitment. Pillar 2 of the agreement, which we are implementing in this Finance Bill, provides for a 15% global minimum effective tax rate, on a jurisdictional basis, for large multinational enterprises with an annual turnover of €750 million. The purpose of that pillar is to put a floor under international competition and level the playing field for all countries, including in particular developing countries, competing to attract foreign investment.

I shall turn now to actions specifically relevant to developing countries, which I think are important. Ireland was one of the first countries to commission an independent spill-over analysis of the impact of our tax system on developing countries. That research project was commissioned by the Department of Finance. The methodology was designed and carried out by the independent, and highly respected, International Bureau of Fiscal Documentation. The independent research project included: an analysis of trade and capital flows between Ireland and developing countries; an analysis of Ireland’s tax treaty network with developing countries; and a review of relevant provisions in domestic tax legislation. The analysis, which was published in 2015, concluded that there were no negative spillovers from the Irish tax regime on the economies of developing countries. Two older double tax agreements were renegotiated on more favourable terms for our partner jurisdictions in light of the report.

I wish to note that, following Government approval, Ireland’s first double tax treaty policy statement was published in 2021. The policy statement outlines a series of economic drivers for potential new partners, including through the creation of a priority list. More importantly, there is a specific policy for the least developed countries in the world. This commits to not approaching any least developed country for a treaty and, where approached by such a country, a commitment to be cognisant of the specific needs of such countries, and to ensuring that any treaty will deliver economic benefits for the treaty partner before agreeing to such a treaty.

I wish to highlight some of the outputs of what we are able to do because of our fiscal position, which demonstrates our continued commitment to international aid and support, particularly for the global south. In the past two weeks, Ireland's commitment is pledged to reach by next year €225 million in climate finance directly for projects that are needed around the world but particularly recognising small island nations and smaller economies, where Ireland has contributed €25 million to the COP28 loss and damage fund that was announced. At the time the fund was announced, and I am saying that in case we have been overtaken by events, Ireland was the second largest contributor per capita globally after the UAE. It is a hugely significant commitment. In the same week, we gave €12 million to the UN's Central Emergency Response Fund, which put us in the top ten in absolute terms as contributors, not just on a per capitabasis. Of course, we fund the UN development programme with its commitment to developing sustainable finance centres around the globe and its commitment to gender in that, in particular. So we have a hugely outward looking aid policy in every Department.That includes the Department of Finance, the Department of energy and the Department of Foreign Affairs. We are certainly committed to that in terms of tax as well. The evidence is very clear in that regard.