Catherine Murphy (Kildare North, Social Democrats)
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233. To ask the Minister for Finance the steps he has taken to eliminate aggressive tax planning indicators since December 2015; if he has advised the tax authorities of other member states; if information regarding these structures form part of the information the State is bound to exchange with other EU countries since 1 January 2017; if other EU member states have taken action to eliminate these facilitators of aggressive tax planning; and if he will make a statement on the matter. [26947/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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I understand the question refers to a working paper entitled 'Study on Structures of Aggressive Tax Planning and Indicators' that was prepared by consultants and published by the European Commission in December 2015.  The Study highlights features of the tax regimes in each EU Member State that, in the view of the authors, could potentially be indicators of aggressive tax planning.

The study is a piece of academic work and therefore there is no mechanism for the exchanging of information by Member States in relation to the report.  I am not aware of any specific action taken by other Member States directly on foot of this study.  The significant action that has been taken by Ireland, and other Member States, since 2015 to tackle aggressive tax planning has focussed on implementing the OECD Base Erosion and Profit Shifting (BEPS) recommendations, which were agreed in October 2015.  

Ireland is fully committed to implementing these recommendations and this process began with the implementation of Country by Country Reporting in Finance Act 2015.  We have also fully implemented OECD exchange of information requirements in respect of tax rulings as agreed in BEPS Action 5.

The EU’s Anti-Tax Avoidance Directive, which was agreed in June 2016, represented a significant further step towards the implementation of the BEPS recommendations. The Directive will see three of the other key OECD BEPS recommendations implemented across Europe. These are rules targeting hybrid mismatches, interest deductibility rules and Controlled Foreign Company rules. Ireland will implement these changes in line with agreed deadlines set out in the Directive.

Most recently, the BEPS Multilateral Instrument was signed by Ireland and 67 other countries in Paris on 7 June.  The Multilateral Instrument will provide the mechanism for extensive changes to tax treaties globally. It will ensure that tax treaties are updated to reflect a number of important OECD BEPS actions, including agreed standards on treaty shopping and dispute resolution.  

We expect the European Commission to shortly publish a draft Directive requiring the disclosure of aggressive tax schemes in line with a BEPS recommendation.  Ireland already has such rules and will engage with other Member States to ensure that we can agree a Directive which faithfully implements the OECD BEPS recommendation in this area. This Directive is likely to include a mechanism to automatically exchange information in relation to any aggressive tax structures devised and reported by tax advisers.  

Finally, the review by an independent expert of Ireland’s corporation tax code which is currently underway will include consideration of what further actions Ireland may need to take to ensure we are fully compliant with the OECD BEPS recommendations.

Catherine Murphy (Kildare North, Social Democrats)
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234. To ask the Minister for Finance the structures in the tax code that were used to arrive at a tax ruling (details supplied) enabling the company to lower the tax it owed the State to as little as 0.005%; and if he will make a statement on the matter. [26949/17]

Clare Daly (Dublin Fingal, Independent)
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237. To ask the Minister for Finance the structures in the tax code which were used to arrive at a tax ruling in relation to a company (details supplied) enabling it to lower the tax it owed here to as little as 0.005%; and if these structures are still in place or are being used in other tax rulings. [27037/17]

Clare Daly (Dublin Fingal, Independent)
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238. To ask the Minister for Finance if he will make a statement in relation to obligations regarding information in relation to structures in the tax code which were used to arrive at the tax ruling with regard to a company (details supplied); and if this is part of the information Ireland is bound to exchange with other EU countries since 1 January 2017. [27038/17]

Róisín Shortall (Dublin North West, Social Democrats)
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285. To ask the Minister for Finance the details of the structures in the tax code which were used to allow a company (details supplied) to lower the tax it owed here to as little as 0.005%; if these structures are still in place; if they are being utilised by other companies; and if he will make a statement on the matter. [27810/17]

Róisín Shortall (Dublin North West, Social Democrats)
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286. To ask the Minister for Finance if information regarding the tax structures that allowed a company (details supplied) to pay extremely low tax here form part of the information that Ireland is bound to exchange with other EU countries since 1 January 2017; if other EU member states have taken action to eliminate these facilitators of aggressive tax planning; and if he will make a statement on the matter. [27811/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 234, 237, 238, 285 and 286 together.

I am advised by the Revenue Commissioners that under Irish tax law, non-resident companies are chargeable to Irish corporation tax only on the profits attributable to their Irish branches. The profits of non-resident companies that are not generated by their Irish branches – such as profits from technology, design and marketing that are generated outside Ireland – cannot be charged with Irish tax under Irish tax law. The trading income of an Irish branch of a non-resident company is charged at the statutory 12.5% rate of corporation tax.

The very low rates frequently cited in relation to multinational companies with branch operations in Ireland are derived by presenting the tax paid in Ireland by these non-resident companies, which are only liable to Irish tax on the income of their Irish branch, as a percentage of the global profits of such global companies – which is misleading as most of the global profit is not chargeable to Irish tax. Such percentages do not compare like with like, i.e. the Irish tax with the Irish income.

The issue of international tax planning, involving mismatches between different countries’ tax rules, is well known. Such mismatches, which can result in substantial profits escaping tax, necessarily involve the misalignment of the respective rules of twocountries and, accordingly, are not the sole responsibility of either of the countries concerned. Nevertheless, consistent with Ireland’s support for the OECD’s BEPS Project to restrict the scope for international tax planning by multinational companies, when Ireland’s management and control-based company tax residence rules were identified as contributing to mismatches with countries that based company tax residence solely on place of incorporation, amending legislation was enacted without delay in the Finance Act 2013 to prevent such mismatches.

Accordingly, the Finance Act 2013 eliminated the mismatch of national rules which allowed an Irish-incorporated company that was managed and controlled in a treaty-partner country such as the United States not to be tax-resident in either country. Where a company became tax-resident in Ireland as a result of this legislative change, any opinion in relation to attribution of income to an Irish branch of a non-resident company ceased to be relevant.

With regard to the actions of other EU Member States, I would highlight that Member States have responded collectively to the issue of aggressive international tax planning by adopting a number of legislative instruments over the past 24 months including a specific Anti Tax Avoidance Directive (2016/1164/EU) as well as a number of amendments to extend the scope of the Directive on Administrative Cooperation (2011/16/EU) – which provides for exchange of tax information between Member States – to include tax rulings and country-by-country reporting. These are important steps in efforts to combat aggressive tax planning across Europe.

The EU exchange of information requirements, as set out in the amended Directive on Administrative Cooperation, apply to rulings provided since 2012, which would include Revenue opinions provided in 2012 and later years. The Deputies’ questions refer to pre-2012 opinions which, accordingly, fall outside the scope of the exchange of information requirements provided by the amended Directive, as agreed by Member States.