Michael McGrath (Cork South Central, Fianna Fail)
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158. To ask the Minister for Finance if he has carried out an assessment of the extent to which multinational corporations not headquartered here are booking in Ireland income from sales made to non-Irish consumers and offsetting Irish profit taxes on this sales income through Irish tax incentives for intellectual property; and if he will make a statement on the matter. [53374/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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As the Deputy will be aware, the structure of the Irish corporation tax regime corresponds to international norms. A company that is resident in the State is taxed on its worldwide income while a company that is not resident in the State, but which carries on a trade in the State through a branch or agency in the State, is taxed on its trading income arising from the branch or agency. The worldwide trading income of a company resident in the State may include income from sales to both Irish and non-Irish customers. Such trading income is, in accordance with our tax rules, properly subject to tax in the State. There is no requirement for companies to specifically distinguish their trading profits between Irish and non-Irish sales and, as such, their trading profits cannot be separately ascertained.

As the Deputy is aware there is a scheme of relief in the form of capital allowances available to companies that incur capital expenditure on intangible assets for the purposes of a trade. The scheme applies to intangible assets which are recognised as such under generally accepted accounting practice and which are listed as a “specified intangible asset” in section 291A of the Taxes Consolidation Act 1997. An important feature of the relief is that the allowances may only be offset against trading income generated from the intangible assets and, for capital expenditure incurred on or after 11 October 2017, only against up to 80% of that income.

I have been advised by Revenue that, in relation to a company’s trading income generated from intangible assets, it is not possible to provide a breakdown as between amounts attributable to Irish and non-Irish sales because there is no requirement or basis for companies to provide this information.

Michael McGrath (Cork South Central, Fianna Fail)
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159. To ask the Minister for Finance his plans to prevent equivalent structures to the single malt being established using Irish registered companies resident in other tax treaty partner jurisdictions, such as the United Arab Emirates, that have not signed Article 4 of the BEPS multilateral instrument or otherwise lack comparable measures in their tax treaties with Ireland; and if he will make a statement on the matter. [53375/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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I am aware that, in the context of references to the so-called single maltstructure, it has been suggested equivalent structures could be established using Irish-registered companies tax resident in the United Arab Emirates (UAE).

However, I am advised by Revenue that, by virtue of paragraph 2 of the Protocol to the Ireland-UAE Double Taxation Convention, a structure of that type could only arise where an Irish-incorporated or registered company used in the structure would pay income tax or corporate tax in the UAE on its income. As income tax or corporate tax would not be paid in the UAE by any such company, such a structure would not appear to be possible.

I am advised by Revenue that it will remain vigilant to identify and address any such structure that would be contrary to the purposes of Ireland’s Double Taxation Conventions. The purpose of not providing opportunities for double non-taxation is set out clearly in the new preamble to Double Taxation Conventions that will come into force through the BEPS Multilateral Instrument.

While I am not aware of any single malt equivalent structure, I will not hesitate to take such action as may be necessary to support Revenue in addressing any such structure.