Fianna Fáil Finance Spokesperson Michael McGrath TD has warned Government that while Fianna Fáil supports international reform to make the global corporation tax regime fairer and more transparent, the party will strongly oppose any plan for Ireland to act unilaterally or in advance of international agreement.
Deputy McGrath commented, “Fianna Fáil is disturbed by reports that Minister Noonan and his Department of Finance officials are drawing up plans for Ireland to surrender competitive advantage in our tax code as part of a scheme to somehow impress people at the OECD in the hope of long term favour.
“Ireland’s tax code is transparent and legitimate. There has been a concerted campaign by a number of other states who would seek to project a cloud over the legitimacy of Irish policy and paint a distorted picture of how the country operates. While the rationale and motivation of these other countries is obvious, it is much less obvious why the Irish Government and officials would seek to enable or encourage these campaigns.
“The Irish economy and many thousands of Irish jobs depend on an industrial policy which has as a key pillar our tax regime. The anomalies that are causing understandable frustration in the OECD and elsewhere arise as a result of gaps in the regimes of other states, including some of those who protest loudest about Ireland’s tax policy.
“We are supportive of the campaign for tax justice internationally and believe that Ireland should play its full part. However, the idea that we would voluntarily surrender competitive advantage before other, much more powerful economies have played their part makes no sense. To do so in some wrong-headed attempt to win friends in the international community and hope that Ireland’s interests would then be protected in the long term is a mistake that Fianna Fáil will vigorously resist.”