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Crunch negotiations are to take place on a key part of the text of an international tax plan which has so far been opposed by the State, Minister for Finance Paschal Donohoe has said.
The Republic has raised concerns during negotiations over the OECD agreement – which it has not yet committed to signing – that it commits countries to raising corporate tax to a level of “at least” 15 per cent.
Dublin is concerned that committing to this could mark the start of an open-ended series of corporate tax hikes, and has sought commitments on that question.
Speaking to reporters in Dublin on Wednesday, Mr Donohoe said he had met with finance ministers from around the world, including US treasury secretary Janet Yellen, at a meeting chaired by UK chancellor of the exchequer Rishi Sunak.
While he attended the meeting in his capacity as chair of the Eurogroup, Mr Donohoe said he was asked for his view as Irish Minister for Finance on the so-called “Pillar 2” proposals of the OECD’s Base Erosion and Profit Shifting (Beps) initiative, which contains the “at least” phrasing.
“In this meeting I again set out the Irish position that certainty in relation to the rate is paramount, and focused in particular on the issue of ‘at least’ and what this means in relation to stability of the rate in the future,” Mr Donohoe said.
“A short while ago, a statement was issued by chancellor Sunak which noted that agreement on this issue now needs to be reached amongst all 140 countries at the OECD inclusive meeting [on Friday, October 8th].
“I expect I will be receiving an updated text on that agreement from the OECD in the coming days and at that point the Government will consider that text,” he said.
“The ambition here is for us all to arrive at an agreement which gives certainty and long-term stability to the international framework and I will continue to work towards delivering that goal and recognising the Irish national position and advocating for it in these important negotiations.”