Michael McGrath (Cork South Central, Fianna Fail)
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123. To ask the Minister for Finance the reason the risk of harmonised European corporation tax and harmonised European digital tax has not been specifically included in the Table 19 fiscal risk assessment matrix in the stability programme update 2018; and if he will make a statement on the matter. [17704/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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Table 19 in the Stability Programme Update identifies areas which potentially have a negative impact on the fiscal position of the State. It is considered that concentration of receipts from a relatively small number of taxpayers represents a medium level risk arising from corporation taxation.

Tax files at EU level are subject to unanimous agreement of all Member States, including Ireland.  A harmonised EU corporation tax or a harmonised EU digital tax could not be introduced without Ireland's support.

Nevertheless, we continue to engage constructively on discussion regarding a common consolidated corporate tax base and on the taxation of digital economy.

By its nature, the common corporate tax base is a complex and detailed proposal and Member States need to fully analyse and consider its potential impact on national tax systems.  Member States are discussing and debating the various aspects of the proposal in the relevant tax working parties.  These discussions at a relatively early stage and much more technical consideration and discussion is needed.

Similarly, Ireland will continue to actively engage with work in the area of the digital economy at both OECD and EU level.  We believe that any reforms in this area must ultimately be globally agreed, evidence based, sustainable in the long run and focused on ensuring the alignment of taxing rights with the location of real substantive value creating activity.