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Ireland 'to review where we stand' on OECD tax plan - Donohoe

The Government is to "review where we stand" on an OECD tax plan across next week, Finance Minist...
Jack Quann
Jack Quann

08.55 30 Sep 2021


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Ireland 'to review where we st...

Ireland 'to review where we stand' on OECD tax plan - Donohoe

Jack Quann
Jack Quann

08.55 30 Sep 2021


Share this article


The Government is to "review where we stand" on an OECD tax plan across next week, Finance Minister Paschal Donohoe says.

He told Newstalk Breakfast the Government is 'going all out' to get clarity on any changes to our 12.5% corporate tax rate.

It is still not clear if Ireland will agree to the deal, which 130 countries have pledged to support.

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Ireland is one of the few nations not signed up to the plan for a global minimum corporate tax rate of 15%.

Minister Donohoe says he talked on Wednesday with finance ministers from the US, UK, France, Germany and Japan on the issue.

And he says talks are continuing to see if progress is possible.

"I made the case again for certainty and for clarity regarding what the rate could be in the future.

"We have been meeting and engaging with both the Commission of the European Union and the...OECD.

"So we are really going all out to secure clarification in the new text for the agreement.

"And I expect... that we will be receiving a new text for the agreement across the coming days.

"And I believe the meeting that will take place on Friday the 8th of October will be another critical moment in this process.

"The Government will review where we stand on this across next week."

He says Ireland has to have clarity on what will happen going forward before anything changes.

"I do accept that there are many who would want Ireland to have signed up before the summer - but before we can sign up to any agreement, we need to be clear regarding what that could mean for us in the future.

"And that's why we're not in the agreement at the moment, but I'm negotiating very hard with many other countries to see if progress is possible".

Ireland 'to review where we stand' on OECD tax plan - Donohoe

00:00:00 / 00:00:00

Businessman Declan Ganley has previously said Ireland should hold out against the plan.

He told The Hard Shoulder earlier this month our low rate is something we are well known for.

"The fact is is that our low corporate tax rate is something that Brand Ireland is famous for.

"You can like that or not like it, but I'm speaking to you right now from Washington DC - and when you're at business events, wherever they are, it's something that everybody knows and refers to.

"So while it may not be the only thing - or the end thing - that attracts people to Ireland, it is the thing that everybody knows.

"It's sort of a big, positive, selling point."

And he suggested that any tax harmonisation would be 'a disaster' for Ireland.

"The problem with the OECD drive is it is a drive to tax harmonisation around the world, and tax harmonisation will be a disaster for economies like Ireland's.

"We are not centrally located in a land mass, we're not connected to rail networks - we have to create competitive advantages in other ways."

Main image: Finance Minister Paschal Donohoe speaking to media today outside Government Buildings in August 2021. Picture by: Leah Farrell / RollingNews.ie

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