DUBLIN: The Government believes that the EU tax transparency rules would not benefit Ireland. According to the Department of Enterprise, Trade, and Employment, multinational corporations’ country-by-country tax reporting can have serious implications for Ireland’s competitiveness.
A public policy discussion on country-by-country reporting on taxes was held at the Informal Competitiveness Council on 25 February. A spokesman for the department confirmed that Minister of State Robert Troy had made Ireland’s position clear at this council meeting.
With corporate tax breaks and numerous other concessions, Ireland is attracting a number of business companies. All of these will be negatively affected by new suggestions.
The proposed tax transparency laws could have serious repercussions in Ireland. The department noted that it would have an impact on both FDI (foreign direct investment) and investment from inside and outside the European Union. The rules will have serious implications for Ireland’s competitiveness and ability to attract investment.
The new law will force multinational corporations to report tax payments and activities to each member state to increase transparency. The Government has strongly recommended to Minister of State Robert Troy to oppose the tax changes in the public debate. Countries including the US and Japan oppose the publication of tax information.
It is estimated that Minister of State Robert Troy’s speech against this tax change, which is backed by the European Union Commissioner in Ireland, Mairead McGuinness, will create a serious situation. This means a Commissioner from Ireland will support the proposal and Ireland will intervene in opposition.
It has been on hold since 2016. However, the EU Presidency now has the backing of 18 member states to move forward. In addition to Ireland, six other member states oppose the law. Although Minister Troy’s intervention has not seen results, Ireland wants opposition and such interventions to remain strong.
Ireland is of the opinion that the respective countries should be given sovereignty in matters of taxation. The finance ministers and the government of each country should be able to take a decision in this regard. There should be no external interference to influence it. For the same reason, Ireland recently announced its opposition to global tax law.
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