Ireland “cannot” accept global tax reform plans (Minister of Finance)
Ireland will not sign global tax reform plans, Finance Minister Paschal Donohoe insisted on Thursday, bolstering the Republic’s resistance position as momentum builds for a deal to ensure multinationals pay their taxes. fair share.
About 132 countries have already agreed to international tax reforms, including a minimum corporate tax rate of 15%.
On Saturday, G20 finance ministers – 19 of the world’s largest economies plus the European Union backed the landmark deal.
But Ireland – which levies a 12.5% corporate tax rate and is seen by some as a “tax haven” – will not approve the plans as is, Donohoe said.
“What is on the table at the moment is a deal that Ireland cannot be a part of,” he told Irish public broadcaster RTE.
“We’re determined to negotiate to see if we can get the deal done at some point, but I’m defending 12.5%,” Donohoe said.
“It has been a key part of our economic policy for decades.”
His comments came after the Irish Examiner reported that Dublin was planning to drop its 12.5 percent rate over fears of international “pariah” status.
“Ireland will continue to defend the rights of small countries to retain some competitive advantage, but we do not want to be an exception in terms of a global tax deal,” a senior government source said.
The newspaper reported that Ireland was planning to make concessions on its 12.5% rate – which has drawn many US tech and pharmaceutical companies to its shores – as part of a new OECD tax deal in October.
But Donohoe said accepting the 15% proposal would create “problems” for “people who have invested in our economy and have expectations about the predictability of our rate going forward.”
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