Michael McGrath (Cork South Central, Fianna Fail)
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40. To ask the Minister for Finance when he expects the OECD to report on the taxing of digital companies; and if he will make a statement on the matter. [9857/19]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Deputy will be aware that the current proposals flow from earlier discussions at both OECD and EU level to address taxation issues arising from the growing digitalisation of the economy. The OECD BEPS Inclusive Framework was given a clear mandate by the G20 in March 2017 to develop this work, which led to the publication of an Interim Report on the Tax Challenges Arising from Digitalisation in March 2018.

Currently, a series of proposals are being discussed at the OECD BEPS Inclusive Framework with a view to further amending the international tax system. There are two proposed pillars to this work:

- The first pillar is a re-examination of rules on profit attribution. Differing proposals are being discussed but all have the intention of ensuring some additional profit is allocated where consumers or markets are located.

- The second pillar looks at addressing remaining BEPS challenges that may enable profits to be taxed at very low effective tax rates.

The OECD BEPS Inclusive Framework have now published a Policy Note outlining the intention to examine the two pillars further, on a without prejudice basis. A Public Consultation document on the proposal has been launched and a meeting will take place at the OECD in Paris on 13-14 March to allow stakeholders to air their views. It is important the views of wider society are reflected as the discussion develops. This will feed into further work with a view to agreeing a detailed work plan at the BEPS Inclusive Framework in May 2019. A progress report will subsequently be presented to G20 Finance Ministers in June 2019. Work will continue over the next 18 months with a view to reaching final agreement by end 2020.

Ireland recognises that further change to the international tax framework is necessary to ensure that we reach a stable global consensus for how and where companies should be taxed. A certain, stable, and globally agreed international tax framework is vital to facilitate cross border trade and investment. We remain convinced that the OECD BEPS Inclusive Framework is the correct forum for this work to be carried out.