James Bannon (Longford-Westmeath, Fine Gael)
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185. To ask the Minister for Finance if he foresees any possible threats to the 12.5% corporation tax regime; and if he will make a statement on the matter. [3578/15]

Michael Noonan (Limerick City, Fine Gael)
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As myself, the Taoiseach and other members of the Government have repeatedly said, the 12.5% corporation tax rate is settled policy.  This position will not change.

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.