Noel Grealish (Galway West, Independent)
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281. To ask the Minister for Finance his views on suggestions from the European Commission and some European Union member states that an enhanced cooperation procedure should be used for the implementation in the EU of pillar two of the OECD agreement on international taxation; and if he will make a statement on the matter. [50283/22]

Noel Grealish (Galway West, Independent)
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282. To ask the Minister for Finance if he is concerned that the use of an enhanced cooperation procedure at EU level in the realm of taxation would impinge on the ability of Ireland and other small EU member states to retain their sovereignty over taxation matters; and if he will make a statement on the matter. [50284/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 281 and 282 together.

Ireland's position on tax is well known and clear. Direct tax is a Member State competence and tax decisions are taken by unanimity.

Pillar Two of the OECD Agreement seeks to introduce a minimum tax rate for multinational enterprises across the globe. The EU Minimum Tax Directive, which introduces a minimum tax in the EU, will ultimately bring long-term stability and certainty to the international tax framework by ensuring there is a consistent and coordinated application of the minimum tax rules across EU Member States.

Although political agreement has not yet been achieved on the Minimum Tax Directive, I am fully supportive of the Czech Presidency's efforts to resolve this and it remains my belief that the Directive will be agreed by all Member States in the near term.

I am aware that some are frustrated at the pace of progress and would prefer to proceed with this legislation using the enhanced cooperation provision of the EU treaties.

I do not see the merit of pursuing a legislative proposal through enhanced cooperation. It is in everyone’s best interest to have the Directive agreed by all EU Member States. I firmly believe that agreement can be reached by all Member States and I continuing to work towards this achievable goal.