Joan Burton (Dublin West, Labour)
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136. To ask the Minister for Finance the work his Department has carried out in ensuring that a minimum effective tax rate is paid by companies offsetting substantial losses accrued against their tax liabilities during the crash; and if he will make a statement on the matter. [34400/16]

Michael Noonan (Limerick City, Fine Gael)
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The availability of relief for losses incurred in a business is a well-established feature of corporation tax systems worldwide. This is in recognition of the fact that a business cycle runs over several years and that it would be unbalanced to tax profits in one year and not allow losses in another. Ireland follows the international norm in that losses incurred in the course of a business are taken into account in arriving at the appropriate amount of tax that a company should bear. In relation to effective rates, analysis done by my Department has shown that our headline 12.5% rate is very close to the effective rates paid. Ireland has a low rate, applied to a broad base with a very small number of targeted incentives.

In speaking about Minimum Effective Tax levels it is vital to know what data is being spoken about. Any calculation of effective tax levels must only consider profits which are legally taxable in the relevant country. What has been clearly shown is that in Ireland, companies pay very close to 12.5% rate on the profits which are correctly taxable in Ireland.