Fianna Fáil Spokesperson on Finance Michael McGrath has said Ireland needs to tread very carefully before agreeing to any changes to our corporation tax regime.
Deputy McGrath was speaking following publication today of the OECD proposals for changes to how multinational corporations pay tax.
Deputy McGrath stated, “As a country, Ireland punches significantly above its weight in terms of inward investment. Many of the world’s largest corporations, especially in the pharmaceutical and tech sectors, have major operations in Ireland and pay corporation tax here. Any changes to our corporation tax regime could ultimately cost jobs and revenue in Ireland. In relation to the BEPS proposals, we need to make sure that the net effect is not simply that corporation tax receipts end up migrating away from countries like Ireland to larger economies.
“Fianna Fáil believes that the corporation tax system for multinational companies must be transparent, fairly applied to all companies and underpinned by strict rules against aggressive tax planning. We strongly support the 12.5% rate and believe that certainty is vital in our corporation tax arrangements. Tax is not the only reason why companies seek to locate in Ireland, but it is undeniably a factor.
“The primary duty of the government here is to protect our national interests. The government needs to ensure that these changes are not implemented in a manner that will seriously disadvantage Ireland. I look forward to participating in the debate around these proposals.”