Maureen O'Sullivan (Dublin Central, Independent)
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16. To ask the Minister for Finance his plans to reform the corporate tax structure; and if he will consider introducing a financial transaction tax following the recent agreement on a commitment to the highest international standards in transparency in taxation of the corporate sector. [27556/16]

Michael Noonan (Limerick City, Fine Gael)
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On 2 September 2016, the Government decided that a motion would be put forward to the Dáil to support an appeal in the Apple State Aid case. At that time the Government also decided as follows:

- to commit to the highest international standards in transparency in the taxation of the corporate sector;

- to affirm its commitment to the 12.5% corporation tax rate; the Research and Development credit and Knowledge Development Box; and

- to commit to arrange for a review of Ireland's corporation tax code by an independent expert; the review will exclude any possibility of a change to the 12.5% corporation tax rate.

I am currently in the process of drawing up the terms of reference for the review. I expect that the terms of reference will be announced at Budget time. 

It is good practice to undertake periodic reviews of key areas of Government policy. The last review of corporation tax policy took place in 2014. Since then a wide range of new international developments have emerged in international taxation, such as BEPS. We need to ensure that Ireland's corporation tax code meets these new standards while remaining competitive as the economy continues to grow.

Ireland continues to take an active role in global work to reform the international corporate tax system and will engage constructively with any measures to work towards international tax reform. 

In relation to the financial transactions tax, on 17th June 2016 the ECOFIN Council discussed the current state of play with regard to the proposal of a number of Member States to introduce a financial transaction tax. In the context of this discussion, ten of the original eleven Member States (Estonia has indicated that it no longer supports the proposal), issued a statement setting out their agreement on the core design principles of an FTT. The statement indicates that further reassurances were needed on two issues in particular, for which two task forces will be immediately set up. First, taxation of derivatives should not have a negative impact on public borrowing costs. Second, tax collection should be cost-effective. The outcome of these two task forces was to be discussed in September. I understand the task forces have had some discussions but that significant differences of opinion remain.

Much uncertainty remains therefore as to the form the FTT might take and more detail would be needed on the final shape of the tax before a definitive conclusion could be reached about its impact on Irish taxation revenue.