Tax policy changes could cost €1bn

International tax policy changes being considered by the OECD could shave €1bn off Ireland’s annual multinational tax take, a Dáil Committee has heard.

Addressing a joint sub-committee hearing on global taxation matters, yesterday, Brian Keegan — director of taxation at Chartered Accountants Ireland — said the OECD’s base erosion and profit sharing policies could have both positive and negative effects for Ireland.

While new transparency proposals could benefit the country, he warned that poor transfer pricing and profit shifting proposals could result in Ireland’s €4bn annual tax take from foreign-owned multinationals falling to €3bn.