Gerald Nash (Louth, Labour)
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267. To ask the Minister for Finance when the public consultation process on the OECD corporation tax proposals will commence; the terms of reference for the process; and if he will make a statement on the matter. [37318/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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On 1 July 2021, the OECD Inclusive Framework reached agreement but not full consensus on key aspects of the two-pillar solution to address tax challenges arising from digitalisation and globalisation. 

Pillar One proposes a re-allocation of a proportion of tax to the market jurisdiction, while Pillar Two seeks to apply a global minimum effective tax rate. Work will now continue with a view to finalising a comprehensive agreement in October.

Ireland has fully supported the Pillar One proposals. This is in recognition that the way in which business is conducted has evolved and that the taxation system must evolve with it. There will be a cost to Ireland for this in terms of reduced corporation tax receipts, but overall Pillar One will bring stability and certainty to the international tax framework and will help underpin economic growth from which all can benefit.

Ireland expressed our broad support for the agreement on Pillar Two but noting our reservation about the proposal for a global minimum effective tax rate of ‘at least 15%’.

A Consultation on OECD International Tax Proposals will be launched by my Department in the coming days. Interested parties will be invited to respond to this consultation on Ireland’s approach to the international tax proposals being discussed at the OECD/G20 BEPS Inclusive Framework and, specifically, in relation to how our approach and those proposals can continue to support economic growth and prosperity.

I remain committed to the OECD process and aim to find an outcome that Ireland can yet support. Ireland will continue to play our part in reaching a comprehensive sustainable and equitable agreement.