Tommy Broughan (Dublin Bay North, Independent)
Link to this: Individually | In context | Oireachtas source

249. To ask the Minister for Finance if his attention has been drawn to the European Commission's study on structures of aggressive tax planning and indicators published in December 2015; if his officials have examined the report; if action has been taken since the publication of the report; if so, the actions; and if he will make a statement on the matter. [27170/17]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I understand the question refers to a working paper 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 agreed international approach to tackling aggressive tax planning is for all countries to implement 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 BEPS recommendation in this area. 

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.