Michael McGrath (Cork South Central, Fianna Fail)
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370. To ask the Minister for Finance the status of the implementation of Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations, transfer pricing guidelines, (details supplied); the timeframe for its implementation; and if he will make a statement on the matter. [26417/16]

Michael Noonan (Limerick City, Fine Gael)
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The OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations ('Transfer Pricing Guidelines') are the internationally recognised standard for the application of transfer pricing.  In general, Irish rules require that the principles in the Transfer Pricing Guidelines, specifically the version of the OECD Guidelines in place at 22 July 2010, must be followed when analysing whether a transaction between associated persons has been entered into at arm's length. 

The output from the OECD BEPS work on Actions 8, 9 and 10 sets out revisions to the Transfer Pricing Guidelines.  On 23 May 2016, the OECD Council approved revised Transfer Pricing Guidelines which incorporate the revisions from the BEPS work.  Countries will be expected in due course to update the references in their national tax laws to the revised OECD Transfer Pricing Guidelines.  

In terms of country by country reporting, in Finance Act 2015, I introduced country by country reporting in line with the OECD BEPS recommendation.  This requires multinational companies with a turnover of over €750 million to file reports of their activities on a country-by-country basis with the Revenue Commissioners. The reports will be shared among tax authorities through confidential information exchange mechanisms.   

The EU subsequently agreed a Directive requiring all Member States to introduce country by country reporting in line with the OECD approach.  Ireland already had legislation enacted prior to the Directive being agreed and was a strong supporter of the Directive.  Indeed Ireland was one of the first countries in the world to legislate for this type of country by country reporting.