Timmy Dooley (Clare, Fianna Fail)
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48. To ask the Minister for Finance his most recent engagement with his EU counterparts on the proposed digital tax; and if he will make a statement on the matter. [45975/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Deputy will be aware that the Commission proposal for an interim Digital Services Tax, which imposes a 3% levy on the turnover of certain companies’ digital activities, is currently being debated among Member States – both at a technical and political level.

I recently reiterated Ireland's opposition to the proposal at ECOFIN on 6 November where I highlighted particular concerns I have regarding the negative consequences for Europe, as a predominantly exporting bloc, from creating a precedent of taxation at point of consumption rather than where value is created. I also pointed out that taxing revenue rather than profits would undermine European competitiveness and could intensify already heightened trade tensions.

While Ireland is among a number of Member States which object to the fundamental nature of the proposal, we are joined by a wider group which share our concerns on a series of technical issues yet to be resolved.

Ireland remains committed to global tax reform and believes that global solutions are needed to ensure tax is paid by companies where value is created. That is why Ireland has been a committed participant in, and strong supporter of, tax reform efforts led by the OECD through the BEPS process. Ireland will continue to actively engage with work in the area of the digital economy at both OECD and EU level.