Catherine Murphy (Kildare North, Independent)
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10. To ask the Minister for Finance his views that the long-term global trend is undeniably toward the progressive elimination of the ability of large multinationals to avoid corporation tax through complex arrangements; his further views that Ireland's vital strategic interest lies in Government preparing a plan to ensure the retention of multinational employers as the favourable tax regime may be eroded by the actions of other states; his long-term strategy in this regard; and if he will make a statement on the matter. [37071/14]

Michael Noonan (Limerick City, Fine Gael)
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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.    

At the same time, countries are increasingly competing for mobile foreign direct investment ('FDI').  The competitiveness of Ireland's overall corporate tax regime is important in that regard, and as I said in my Budget speech last October, Ireland will play fair, as we have always done, but play to win.

Last year I published a new International Tax Strategy statement in the Budget which sets out Ireland's objectives and commitments in relation to these issues.  In it, I was clear that the best way to address the issue of aggressive tax planning across borders is for countries to work together at an international level.  This is particularly important as we need to ensure a level playing field among countries, in order for Ireland to compete fairly.

As I said in the Dáil last week, I remain firmly of the view that the changes that are coming internationally present many opportunities for Ireland as a competitive location for FDI.

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 corporation tax 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.  This will not change in the post-BEPS environment.

At 12.5%, Ireland has the most competitive headline corporate tax rate in the OECD, which is applied to a broad base.  Corporate tax rates are a matter of national sovereignty. This Government is committed to maintaining it.

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.