Michael McGrath (Cork South Central, Fianna Fail)
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151. To ask the Minister for Finance the status of discussions with Brazil on its decision in September 2016 to add Ireland to its tax blacklist; and if he will make a statement on the matter. [29581/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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Efforts are continuing to seek Ireland’s removal from the Brazilian black list. A technical delegation from the Department of Finance and Revenue met with Brazilian officials in March 2017 to seek a resolution to this issue.

Since March there has been continuing contact with the Brazilian authorities at official level.  My predecessor Minister Noonan also raised the issue directly with the Brazilian Finance Minister earlier this year.  Ireland’s appeal of the listing remains under consideration pending a final decision from the Brazilian Revenue Secretary.

Ireland has been included on this list on the basis that the 12.5% corporation tax rate is below 17%, the threshold set by Brazilian law. We believe that focussing on the statutory tax rate fails to reflect the realities of the Irish regime which focusses on substance and which also has a 25% rate for passive income and a 33% rate for capital gains. We continue to engage with the Brazilian authorities to seek a resolution to this issue.