Louise O'Reilly (Dublin Fingal, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

20. To ask the Minister for Enterprise, Trade and Employment the means by which Ireland will implement the public country-by-country reporting directive by the legal deadline of June 2023; and if he will make a statement on the matter. [63427/22]

Dara Calleary (Mayo, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

Directive 2021/2101, commonly referred to as the Public Country by Country Reporting Directive, seeks to combat aggressive tax planning, by requiring Multinational Enterprises (MNEs) to publish tax information reports thereby encouraging transparency and public scrutiny through democratic debate.

MNEs whether headquartered in the EU or not, with a base, subsidiary or branch in the EU and net turnover above €750 million for two consecutive financial years, will be required to publish country by country tax payment information.

Public country by country reporting is considered an effective transparency tool as to the impact of MNEs activities on the real economy; for investors ability to evaluate risk; the protection of creditors; and is expected to have a positive impact on employee’s rights to information and consultation.

For the first time, non-European MNEs doing business in the EU through subsidiaries and branches will also have to comply with the same reporting obligations as EU MNEs.

The Directive has a transposition deadline of 22 June 2023. To ensure the transposition is conducted in the most efficient manner possible it will be done by way of statutory instrument under the European Communities Act 1972. Member States are required to have the necessary legal and administrative provisions in place at the latest for the first financial year starting on or after 22 June 2024 and it is anticipated that Ireland will meet this deadline.

Draft Regulations are with the Office of the Parliamentary Counsel for finalisation and settlement.