Micheál Martin (Cork South Central, Fianna Fail)
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183. To ask the Minister for Finance if he will report on the EU proposals on digital taxation; and if his other EU counterparts have discussed the need for change in this area with him directly. [46799/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Deputy will be aware that the Commission proposal for an interim Digital Service 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.

Most recently, digital tax was on the agenda at ECOFIN on 6 November where I reiterated Ireland’s principled opposition to the proposal and took the opportunity to remind my fellow Finance Ministers of the achievements that have been made in the field of international tax reform when we have cooperated at a global level.

I also 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 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. Discussions will continue this month on the many outstanding technical issues on the proposal with the topic likely to be back on the agenda for December’s ECOFIN.

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.