Mick Barry (Cork North Central, Solidarity)
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256. To ask the Minister for Finance the measures he will take to eliminate the opportunities for companies to use Ireland in tax fraud measures as exposed in files (details supplied); and if he will make a statement on the matter. [54448/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Central Bank of Ireland is the independent financial regulator in Ireland and is responsible for the authorisation and supervision of financial services firms. The legislative framework that applies to regulated financial services providers includes European and domestic legislation along with Central Bank regulations and guidance.

The Central Bank, as the independent financial regulator, is committed to effective supervision in keeping with its mandate to safeguard protect investors, financial stability and market integrity. The Central Bank is rigorous in its assessment of risks having regard to the evolving market and risk landscape. Ensuring that regulated financial services providers can clearly demonstrate their compliance with their legislative and regulatory obligations is integral to this process.

With regard to taxation, the European Securities Markets Authority (“ESMA”), launched a formal inquiry concerning dividend withholding tax reclaim schemes in July 2019. The Central Bank of Ireland, in consultation with the Revenue Commissioners, contributed to this process. ESMA’s main conclusion was that Withholding Tax (WHT) schemes are to be primarily considered as a tax related issue and that a first legislative and supervisory response should be sought within the boundaries of the tax legislative and supervisory framework. The key recommendation in the report, within the remit of financial services legislation, is that EU National Competent Authorities (NCAs) for securities markets should be empowered - through amendments to EU legislation - to share information received from other NCAs with national tax authorities, to assist in the detection and prosecution of illegal withholding tax reclaim schemes.

Finally, I would like to mention an important domestic development for the financial services industry, which is the steps being taken to introduce a Senior Executive Accountability Regime (SEAR). This will place obligations on firms and senior individuals within them to set out clearly where responsibility and decision-making lies. Legislation is required and drafting is advancing. Such developments will lead to the further development of a resilient and trustworthy financial services sector, in which firms and individuals adhere to a culture of fairness and high standards.