Minister for Finance Paschal Donohoe has said that Ireland will enter the OECD’s global tax agreement if certainty and stability on corporation tax rates can be assured and if not “we will stay where we are”.
Speaking on RTÉ’s Morning Ireland, Mr Donohoe said the coming week is a critical time in the negotiations as the OECD will issue a further text for inclusion in the agreement which the Government will then consider.
“We will know where we stand when we see the text – it is a delicate text,” he stated.
Minister Donohoe said he has strongly advocated Ireland’s position that stability in relation to the rate of tax into the future is vital to Ireland and is not provided for in the current draft agreement.
He said a final decision is possible in the coming weeks after years of negotiations.
Minister Donohoe said that he is also seeking to protect research and innovation in the economy and the role of domestic industry here.
Paschal Donohoe attended a virtual meeting of G7 finance ministers yesterday, which focused on the current status of the negotiations that are underway around global tax reform.
He was taking part in his capacity as President of the Eurogroup, but said he was invited during the meeting by the chair, UK Chancellor Rishi Sunak, to contribute in his capacity as Minister for Finance for Ireland.
On the issue of a pandemic bonus, the Minister for Finance said that he favours the agreement of a bonus that is “fair, inclusive and affordable.”
He said the detail needs to be concluded with worker representatives and in the context of the “extraordinary effort put in by so many to protecting our country at a time of crisis”.
Minister Donohoe said that the Government has not yet concluded its evaluation of the issue.