Seán Fleming (Laois-Offaly, Fianna Fail)
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24. To ask the Minister for Finance the importance he attaches to stability in Ireland’s corporation tax regime; and if he will make a statement on the matter. [37063/14]

Michael Noonan (Limerick City, Fine Gael)
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The importance of maintaining the standard 12.5% rate of corporation tax to Ireland's international competitive position is fully appreciated by the Government.  A competitive corporate tax rate is a tool to address the economic limitations that come with being a peripheral country, as compared to larger core countries. Ireland's corporation tax rate plays an important role in attracting Foreign Direct Investment ('FDI') to Ireland and thereby increasing employment here.

Further, it is clear that the certainty around the rate of Irish corporation tax is one of its biggest strengths, underlying the Government's commitment to the rate.  This certainty is important for business here, both domestic and international as companies plan investment decisions over the medium to long-term.

With regard to international tax issues more generally, the ability of some multinationals to lower the amount of corporation tax they pay world-wide using international structures is an issue that has attracted a lot of public and media attention over the past 24 months.

The G20 have acknowledged that this is a global challenge that requires global action, and this is happening through the OECD Base Erosion and Profit Shifting ('BEPS') project. 

Ireland is actively engaged in this process and it is anticipated that BEPS will result in changes being made to the international taxation rulebook which countries rely on for international trade.  Ireland has always played by these rules and played to win as is evidenced by our successful track record for attracting FDI. 

This will not change in the post-BEPS environment, and I believe that the BEPS project will create opportunities for Ireland.

For example, one of the key concepts of BEPS is the better alignment of substance with taxing rights. The alignment of substance with a competitive rate of tax has been the cornerstone of our CT policy since the 1950s so I believe that any change that may result from this process will lead to additional opportunities for Ireland.  Ireland has not been and will never will be a brass-plate location. We only have and want real substantive FDI, the kind that brings real jobs and investment into Ireland.

Ireland's offering of a competitive corporate tax rate, the availability of skills, and a reputation for being business friendly is a huge advantage that other countries will struggle to match.  As international tax loopholes progressively get closed down, our low general corporation tax rate will become even more attractive.

Indeed as we continue to improve our offering for knowledge based investment, R&D and intellectual property, I believe over the coming years we can continue to grow our share of FDI-related investment.