Pearse Doherty (Donegal, Sinn Fein)
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81. To ask the Minister for Finance if he has scoped the potential impact of proposed United States tax changes to the taxation of intellectual property on the State; the level of research his Department or other Departments or agencies are involved in to quantify the possible impact here; and if he will make a statement on the matter. [53289/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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The proposed changes in the US tax code currently being debate by the US Congress are relevant to all countries that trade with the United States.  The importance of US tax rules is reflected in the fact that the proposed changes were discussed by European Finance Ministers at the recent ECOFIN meeting. 

The proposed legislation has not yet been finalised or signed into law at this point in time.  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.

It is not just changes to the taxation of intellectual property that could be relevant, but rather the proposed broader changes to the US international tax regime and how the US tax the overseas operations of US business. I am supportive of US proposals 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.  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. These are points I made to US legislators during my recent visit to the US.

My officials, together with our Embassy in Washington, have been closely tracking the debate and progress of the proposed US legislation.  My officials have also been in regular contact with the Revenue Commissioners and the Department of Business, Enterprise and Innovation as part of efforts to analyse the potential impacts of US tax reform.

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.