Minister Donohue’s Corporation Tax Roadmap is a forced march - Pearse Doherty TD
Sinn Féin Finance spokesperson Pearse Doherty TD has said that the Finance Minister’s Corporation Tax Roadmap is in reality more a “forced march” than a Roadmap.
Deputy Doherty said the vast majority of the measures announced were moves that Ireland has to take to implement international agreements. The Donegal TD said that the report was silent on the issue of taxing the billions of assets onshored by multinationals before the 80% cap was brought in.
Deputy Doherty said:
“I welcome the publication of this paper by the Minister but in reality it is more a forced march than a roadmap. Many of the key headlines are in fact measures that the State is obligated to carry out and has been dragged kicking and screaming to do so.
"The headline action of introducing Controlled Foreign Company rules with effect from 1st January 2019 is necessary to implement an EU Directive.
"However the strength of these rules relies on the will of national governments. This is where the real intent of the government will be shown rather than in headlines.
"Similarly the 'Exit Tax' must be implemented by 2020. Again the devil will be in the detail as to whether there is any intent to be genuinely reforming or whether this is another case of doing the bare minimum.
"One thing the report is silent on is the ongoing scandal of the use up to 100% of onshored assets by multinationals to write off against profits for the purposes of reducing their tax.
"The 80% cap brought in last year’s Budget does not capture assets onshored before that date. Changing this rule would bring fairness to the system and generate €650m in revenue for the State.
"The report also makes no comment on the need for public country by country reporting.
"I look forward to examining the proposals in detail including during the Finance Bill but my initial reaction is that this is a series of steps that have to be taken anyway dressed up as the government doing something pro-actively.”