Michael McGrath (Cork South Central, Fianna Fail)
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128. To ask the Minister for Finance the status of discussions with the Brazilian authorities regarding their decision to designate Ireland as a tax haven; his views on whether the decision will be reversed; if further meetings with the Brazilian authorities are planned; and if he will make a statement on the matter. [4011/17]

Michael Noonan (Limerick City, Fine Gael)
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Ireland remains in regular communication with the Brazilian Federal Revenue Service  on the inclusion of Ireland on their tax blacklist. Contact is ongoing and as I previously advised a technical delegation will be travelling to Brazil to discuss the issue with Brazilian officials.  It should be noted that Brazil have not designated Ireland a tax haven.  The Brazilian Federal Revenue Service have advised that they have included Ireland on a tax list of countries with favourable tax regimes because our 12.5% corporation tax rate is below 17%, a level set by Brazilian legislation.  I disagree with the inclusion of Ireland on this list. The 12.5% rate is a long established and important part of our overall tax system. Focussing on the 12.5% rate ignores the existence of the 25% and 33% corporation tax rates. It also creates a misleading impression that Ireland is a low corporate tax collecting country which is inaccurate. We will continue to communicate with the Brazilian Federal Revenue Service and seek to provide clarity on our corporation tax regime.