Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

Officials in my Department have been actively considering the report by the Secretary General of the United Nations on possible options for an enhanced role for the UN in international tax matters with a view to improving the inclusivity and effectiveness of global tax rules.

Ireland recognises the important role the UN has to play in supporting and enhancing international tax co-operation globally, especially in relation to domestic resource mobilisation, and we look forward to participating in the discussions developing the report into a deliverable outcome over the coming months.

We believe that in progressing that work it will be important to ensure that developments at the UN are as complementary and co-ordinated as possible with on-going work at the OECD and do not undermine or duplicate the ongoing work, which is in its final stages, and should be allowed to come to fruition. Ireland signed up to the OECD two-pillar solution in October 2021 and we intend to follow through on that commitment. Global implementation of the agreement is crucial to the stability of the International Tax framework.

The OECD have a proven record of accomplishment in delivering international tax reform. The BEPS project developed 15 actions which as well as limiting the aggressive behaviours of MNEs introduced a new framework for tax transparency. This considerable achievement should not be underestimated.

Besides the Inclusive Framework on BEPS, the OECD have facilitated significant developments in international cooperation, including the Global Forum on Transparency and Exchange of Information for Tax Purposes. The Tax Inspectors Without Borders initiative is an example of how the OECD’s policy expertise, standards and networks can be combined with the operational capabilities of the UN to contribute to tangible development results.

Ireland is also working closely with its EU partners in this matter and a common position on the UN proposals was submitted by the Presidency of the Council of the EU in September on behalf of all Member States. That position welcomed the opportunity to progress these discussions and supported option 3 of the UN report, i.e. working at the UN on a non-binding multilateral agenda for coordinated actions in a way that it avoids duplication with existing international tax agreements and facilitates parallel and sustained progress at the OECD. We are continuing to engage closely as the proposal progresses through the UN.

It is important that we all work to enhance co-operation instead of creating divergent positions or parallel processes, especially with regard to international tax. We will continue to engage with the process and are looking forward to seeing the ultimate outcome