Maureen O'Sullivan (Dublin Central, Independent)
Link to this: Individually | In context | Oireachtas source

30. To ask the Minister for Finance if Ireland is making progress in efforts to combat illicit financial flows from low and middle-income countries; the steps he will take to place equitable tax policies at the heart of Irish Government policy and at the heart of the global post-2015 agenda; and if he will make a statement on the matter. [8343/15]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

In 2013, my Department set out an International Tax Strategy outlining principles and strategic objectives; it guides our approach to international corporate tax issues and it contains, inter alia, a commitment to engage constructively and respectfully with developing countries in relation to tax matters. Our commitment is to support such countries in raising domestic tax revenues in ways that are more efficient, that promote good governance and equitable development, and that can allow them to eventually exit from a dependence on official development assistance. As part of this commitment, we are currently conducting 'spillover analysis' to research what impact, positive or negative, Ireland's tax system may have on the economies of developing countries; this research is due to be finalised around April 2015.

A process is also underway at the UN to replace what were known as 'Millennium Development Goals' with a post-2015 menu of 'Sustainable Development Goals' (SDGs). My colleague the Minister for Foreign Affairs and Trade is taking the lead in these negotiations; the process includes negotiating a new Global Partnership on "Financing For Development" whereby countries like Ireland will commit to achieving the new SDG's, one of which includes combating illicit financial flows and tax cooperation. Ireland will proactively assist in the development of these "Financing For Development" proposals which will be central to a new framework for global development.

In addition to the above, Ireland proactively combats the inflow of illicit funds from low and middle-income countries by ratifying international anti-money laundering and anticorruption conventions. One example of the sort of measure which seeks to prevent inflows of corrupt monies is in s.37 of the Irish Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 which requires Irish financial services providers to apply enhanced customer due diligence procedures when providing services to foreign politically exposed persons. Furthermore, the latest EU directive in this area, the 4th Anti-Money Laundering Directive was recently agreed by Ireland and other Member States in January 2015 and the final legal text is due to be published shortly.  We hope to transpose the Directive as soon as possible.