Peadar Tóibín (Meath West, Aontú)
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168. To ask the Minister for Finance if his Department has carried out any preparation to deal with a potential fall in corporation tax as a result of the pending tariff war between the US and the EU. [5460/25]

Peadar Tóibín (Meath West, Aontú)
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169. To ask the Minister for Finance if his Department engaged with the US administration to seek to mitigate against the fall in tax revenues that could result in a tariff war between the US and the EU. [5461/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 168 and 169 together.

I note the position of the US administration in relation to the OECD agreement and the Presidential Memorandum issued on 20 January. As ever, we will engage constructively with the new US administration. Indeed, I believe that it will be important for all parties to engage constructively over the coming months to examine mutually beneficial solutions to these issues, and we will continue to lend our support to such an approach through our engagement at all levels including the EU, OECD and G20.

All taxes are considered annually as part of the Budgetary process and the Programme for Government 2025, Securing Ireland’s Future, commits the Government to maintaining a broad tax base to guard against the need for counter-cyclical fiscal policy as well as maintaining a tax system that supports innovation and entrepreneurship.

In relation to the sustainability of Ireland's current levels of corporation tax, a number of steps have been taken in recent years to ensure that everyday Government expenditure plans do not rely on the current high level of corporation tax receipts, which may be cyclical in nature.

My Department published a paper, De-Risking the Public Finances - Assessing Corporation Tax Receipts, in September 2022 highlighting the risks associated with potentially transient corporation tax receipts. This informed a process which resulted in establishment of the Future Ireland Fund and the Infrastructure, Climate and Nature Fund. These Funds are designed to save and invest resources to deal with known and unknown long-term pressures on public expenditure; to support countercyclical expenditure and help address specific climate and nature problems and continue to maintain a stream of investment in the domestic economy though the Ireland Strategic Investment Fund.