Willie Penrose (Longford-Westmeath, Labour)
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Question 92: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if an assessment has been carried out of the implications for investment here of the proposed changes in US tax law recently announced by President Obama; and if she will make a statement on the matter. [19816/09]

Mary Coughlan (Donegal South West, Fianna Fail)
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The proposed tax changes outlined by the U.S. Administration on 4 May were proposals and not detailed draft legislation so it is not possible to definitively state what the effect will be for U.S. foreign direct investment in Ireland. However, the stated intention of the Obama Administration is to target tax havens. Ireland is not a tax haven, nor is it considered as such by the U.S. Government.

The Minister for Finance and myself have already briefed our Cabinet colleagues on the proposed changes. With over 450 American companies having invested over $55 billion in Ireland, we are acutely aware of the importance of any potential changes to the U.S. tax code on investment abroad.

A monitoring system for developments in relation to the US international tax code has been in place for a number of years. In addition, a contact group of senior officials from my Department, the Departments of Finance and Foreign Affairs, the IDA, and Revenue has been meeting to monitor ongoing developments.

We will continue to engage with the US Administration and with Congress as this issue develops and the initial proposal evolves into something more formal. To this end, the IDA has deployed a senior executive to the Embassy in Washington as a point person to monitor and engage with this issue.