Written answers

Tuesday, 2 May 2017

Department of Finance

Foreign Direct Investment

Photo of Seán SherlockSeán Sherlock (Cork East, Labour)
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225. To ask the Minister for Finance the engagement he has had with the American Treasury Department and the American Secretary of the Treasury on the impact of US tax reform on Irish businesses; and if an analysis has been carried out by his officials on the impact that the introduction of a border adjustment tax and the introduction of a corporate tax reform in the United States of America will have on Irish exporters. [19232/17]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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On a visit to the United States last year I met the previous Secretary of the Treasury, Jack Lew, who informed me of the work that had been done at that stage on US tax reform. In February of this year, Steven Mnuchin was appointed as the new Secretary of the Treasury. On my most recent trip to Washington last month for the IMF/World Bank Spring Meetings I was able to listen to Secretary Mnuchin views on the new US administration’s plans for tax and the economy.

I am aware that there is extensive commentary on the prospects of US tax reform taking place in the near future. Proposals for US tax reform are, at this stage, just proposals. Agreement between the U.S. House of Representatives, the U.S. Senate and President Trump is needed before any changes can be introduced.

The exact implications for Ireland, and the rest of the world, will depend on the exact nature of any changes which may ultimately be agreed. The border adjustment tax is one type of reform which has been proposed by members of the U.S. House of Representatives. We are yet to see details of how a border adjustment tax would be designed and how it would operate in practice. The proposals for US tax reform announced by the White House on 26 April did not include a proposal for a border adjustment tax.

Global business, from the US or elsewhere, will always want to have operations in the EU, and Ireland will remain very competitive and attractive as an EU location to invest in and do business from. Ireland’s corporation tax regime will continue to offer long term certainty to international business. As always, we will remain alert and responsive to any changes in the global tax environment.

The Department of Finance, and our Embassy in the US, are closely tracking the debate and we continue to engage with business and others to fully understand the potential impacts of any US tax reform.

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