Gerald Nash (Louth, Labour)
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85. To ask the Minister for Finance his views on the decision taken by the UN Committee on the Rights of the Child to examine the impact of Ireland’s international tax policy on the ability of countries of the global south to raise revenue and fulfil their human rights obligations; the details on any engagement his Department has had to date in 2020 with the UN committee in this regard; and if he will make a statement on the matter. [39158/20]

Paschal Donohoe (Dublin Central, Fine Gael)
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As a signatory of the United Nations Convention on the Rights of the Child, Ireland is required to submit regular reports on measures taken to give effect to the Convention. The Department of Children, Equality, Disability, Integration and Youth holds primary responsible for reporting back to the UN Committee, in coordination with Government Departments and other civil society stakeholders.

It is understood that tax policy was added to the List of Issues Report for Ireland arising from a submission from some NGOs. The inference that Ireland’s tax policies is negatively impacting on resources for the realisation of children’s rights in developing countries is unjustified, and misrepresents Ireland’s role in international tax reform and development.

Ireland has been a strong supporter of international tax reform and development.

First, Ireland joined the Addis Tax Initiative in February 2017 which is an international commitment to strengthen international cooperation in the area of tax and development. In this context, Ireland launched a Domestic Resource Mobilisation(DRM) initiative in 2019 to promote good tax governance in developing countries. DRM is a whole of government collaboration between my own Department, the Department of Foreign Affairs and the Revenue Commissioners to strengthen partner countries’ tax administrative capacity. It aims to support these countries in raising revenue fairly and effectively, through equitable and inclusive means, while also promoting good governance.

Ireland's long-term support of the African Tax Administration Forum (ATAF) was recognised at the 2019 General Assembly of ATAF, where Ireland was awarded a 'Most Valued Development Partner' award.

Second, Ireland was one of the first countries to commission an independent spill-over analysis of the impact of our tax system on developing countries. This project included: an analysis of trade and capital flows between Ireland and developing countries; an analysis of Ireland’s tax treaty network with developing countries; and review of relevant provisions in domestic tax legislation. This 2015 report concluded that there was no negative spill-overs from the Irish tax regime, or Ireland’s modern tax treaties, on the economies of developing countries.

Third, as regards the international tax framework, there have been significant developments in recent years through the OECD BEPS process. Ireland has been fully supportive of this process and has introduced legislation to implement it. I hope that further progress will be made at the OECD/G20 Inclusive Framework on BEPS as planned by mid-2021.

Ireland's response to the Committee is due by 30 October 2021. I welcome this opportunity to inform the Committee of how Ireland's approach to tax policy is contributing to Ireland's obligations with regard to the Convention on the Rights of the Child.