Michael Lowry (Tipperary, Independent)
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13. To ask the Minister for Finance the potential effects of President Trump’s threatened big border tax on Irish companies in the United States if they expand manufacturing facilities abroad for products to be sold in the United States; the potential implications for jobs here; and if he will make a statement on the matter. [48519/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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The international aspects of the US tax code are of course very relevant to Ireland and to any US business with operations here and those many Irish businesses that trade with the US.   The full implications of US tax reform for Ireland, and the rest of the world, will depend on the exact nature of any changes which are ultimately agreed by both Houses of Congress and President Trump.

The House and Senate have proposed different new anti-avoidance measures to protect the US tax base and it remains to be seen what final measures can be agreed on.  The original border adjustment tax proposal announced earlier this year has not been included in either legislative proposal.

In general, it is important that any anti-avoidance measures adopted by the US recognise that international trade between companies and countries is mutually beneficial and should be encouraged.  I am supportive of US measures that ensure tax is not artificially avoided through base erosion or profit shifting, but care is needed so that genuine commercial arrangements are not hit with double taxation which is damaging to economic activity, trade and investment. These are points I made to US legislators when I was in the US recently. 

Regardless of what happens with US tax reform, Ireland’s corporation tax regime will continue to be competitive while also offering long-term certainty to international business.  Ireland remains committed to long-term stability and to the 12.5% corporation tax rate.  As always, we will remain alert and responsive to any changes in the US or global tax environment. 

The level of investment from the US into Ireland cannot be attributed just to corporate tax policy – that is not a fair reflection of the many other reasons that companies choose to locate in Ireland.  Factors such as availability of physical and technological infrastructure, availability of skilled staff, access to the EU market as well as culture and quality of life are also significant and important considerations.