A seminar on international taxation, hosted by the Department of Finance, took place on Wednesday, 21 April. Minister for Finance, Paschal Donohoe TD, in his opening address discussed Ireland’s commitment to reaching an agreement on the OECD Inclusive Framework’s latest iteration of the BEPS project while also emphasising Ireland’s commitment to the 12.5 percent corporate tax rate. Minister Donohoe stated that international agreement on global tax reform must facilitate healthy and fair tax competition.

The Minister said that the Irish corporation tax rate “can contribute to Exchequer revenues for investment in infrastructure and capacity, and one that can also stimulate investment, growth and innovation, which are core to Ireland’s industrial policy.” He described it as “a fair rate and within the ambit of healthy tax competition”.

On reaching agreement on the OECD two-pillar solution to the tax challenges arising from digitalisation, the Minister said:

“I believe that an agreement can be reached and I will work constructively towards such an agreement. But, I also believe that it is a legitimate objective that any agreement can facilitate healthy and fair tax competition, while meeting the needs of all, not just some of the participants.

In stressing this point, we must recall that, today, we have far more robust international tax rules and safeguards to prevent abuse, arbitrage, base erosion and profit shifting than existed a decade ago.

The BEPS project has gone a long way to providing these safeguards and we are willing to go that extra mile in strengthening them.”

The Department of Finance press release includes a link to the Minister’s entire speech. You can view the recording of the seminar on gov.ie also.