Olivia Mitchell (Dublin South, Fine Gael)
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Question 112: To ask the Minister for Finance if his attention has been drawn to the extent of challenges by US Internal Revenue to pricing arrangements between Irish based affiliates of US corporations and related corporations based in the US; if his attention has been drawn to the fact that successful challenges to pricing arrangements in these circumstances can result in a refund or downward adjustment having to be made by the Revenue Commissioners of corporation tax already paid on profits reported under Article 9 of the taxation treaty between the two countries; the number of such pricing challenges made by US Internal Revenue for the years 2005, 2006, 2007 and 2008; the number of cases finalised to date in 2009; the yearly amounts of tax repaid or agreed to be repaid for each year or where applicable, downward adjustments of Irish tax; and if he will make a statement on the matter. [46210/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I am aware that the US Internal Revenue Service (IRS) routinely carries out transfer pricing audits of US multinational groups to check that the prices being charged between the US group companies and their non-resident affiliates represent those that would be charged between unrelated parties acting at arms-length. This may result in an adjustment of the amount of profits charged to tax in the US.

As the Deputy has pointed out, Article 9 of the Ireland-US Double Taxation Convention provides for the making of such adjustments. Article 9 also provides that where one country makes an upward adjustment to the profits of a company resident in it, in relation to transactions with an associated company resident in the other country, the other country should make a corresponding downward adjustment, in the profits of its company, if it agrees that the adjustment by the first country was justified. This can give rise to a reduction of tax paid in the other country, which is necessary to avoid double taxation of the same profits. The terms of Article 9 of the Ireland-US Double Taxation Convention fully reflect the OECD standard treatment of this issue in international agreements for the relief of double taxation.

In terms of the overall numbers of such transfer pricing adjustments carried out by the US IRS, the number of cases involving Ireland is small. In relation to your request for specific information, while full data on the numbers of such cases and the amounts of the corresponding adjustments to Irish tax which have been made since 2005 is not immediately to hand, it is being compiled by the Revenue Commissioners who will forward it to you shortly, as soon as it is complete.

John Deasy (Waterford, Fine Gael)
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Question 113: To ask the Minister for Finance his plans regarding public transport providers paying the proposed carbon tax; and if he will make a statement on the matter. [46224/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I am committed to the introduction of a carbon tax, however, I would draw to the Deputy's attention that it is the usual practice for the Minister for Finance not to speculate or comment in advance of the Budget on what it will contain and I do not propose to deviate from that practice.