Paschal Donohoe discusses the worldwide tax reform

0
88
Paschal Donohoe discusses the international tax reform

Donohoe said he wanted “an outcome that is a fair and balanced compromise by and for all 139 countries of the OECD Inclusive Framework”.

IReland’s commitment to reaching an agreement on taxing the digital economy remains determined, said Irish Finance Minister Paschal Donohoe.

Donohoe spoke at a virtual seminar on international tax law on April 21.

“Ireland will continue to engage constructively in the discussions in the months to come, as we have done for many years. In these discussions, we need to make sure that both the architecture and construction are correct. We need a solid foundation to ensure that we have a sustainable structure that we can all buy into and that will stand the test of time, ”said the minister.

“We believe that any agreement should be based on guiding principles, bearing in mind that whatever has been agreed in the OECD must be underpinned in the European Union by directives that are binding on the Member States.”

Speaking of Ireland’s corporate tax rate of 12.5 percent, Minister Donohoe remained committed to that rate and stated: “I strongly believe that the long-established Irish corporate tax rate of 12.5 percent is a fair rate and within the framework of healthy tax competition lies. This rate can add to the Treasury revenue for investments in infrastructure and capacity and also encourage investment, growth and innovation, which are central to Irish industrial policy. “

“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 aim that any agreement enables healthy and fair tax competition while meeting the needs of all, not just a few, participants. “

In his concluding remarks, Donohoe highlighted the need for stability with a tax framework that supports growth, provides security, protects against abuse, is globally applicable and ensures fair tax competition.

Donohoe said he wanted “an outcome that is a fair and balanced compromise by and for all 139 countries of the OECD Inclusive Framework”.

Pascal Saint Amans from the OECD, Benjamin Angel from the EU Commission and Fabrizia Lapecorella from the Italian Ministry of Finance took part in the virtual seminar.

The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and writes regular updates on transfer pricing and international tax law. Alex can be reached at editor@transferpricingnews.com