Noonan can’t be allowed undermine progress on international tax – Doherty
Sinn Fein Finance Spokesperson Pearse Doherty TD has welcomed the OECD’s latest report on international taxation and warned that Minister Michael Noonan should not try to undermine the progress made internationally with measures at home.
Deputy Doherty said:
“There are some positive moves in the latest OECD report that I welcome. Clearly, the right of an Irish government to set our tax rates is not at stake. The real issue is whether Ireland will be part on a transparent international system of multinational taxation or whether we will continue to seek to play with one foot in both camps.
“Minister Noonan has acted only under pressure on issues related to Corporation Tax including by belatedly moving to make companies that were incorporated here but technically stateless for tax purposes resident here as a default. Now as some progress is made internationally, he has given very strong indications that the Budget will be used to introduce a new Research and Development or ‘Knowledge Box’ offering a tax rate as low as 6.5%. These ‘knowledge boxes’ have been used internationally as tax avoidance tools.
“Ireland’s reputation has taken a battering in recent years and while some of this is down to a negative agenda of attacking tax sovereignty there are genuine concerns raised by international organisation and those working with the developing world.
“If the pending EU Commission decision on Apple goes against Minister Noonan, that credibility will be further diminished. Minister Noonan should take a step back and consider whether his so called Knowledge Box is wise given the progressive moves occurring in the international tax environment. A mature corporation tax regime based on a 12.5% rate is now called for, not more schemes and nod and wink deals.” ENDS