OECD consults on big global tax shake-up that will affect Ireland

Body is seeking to secure widespread support, including that of the incoming administration of Joe Biden
OECD consults on big global tax shake-up that will affect Ireland

Finance Minister Paschal Donohoe believes that agreement within the OECD will be reached, but that it will take a little longer than some think.
Picture: Leah Farrell / RollingNews.ie

The Organisation for Co-operation and Development (OECD) which is driving potential big changes in the way multinationals are taxed, is hosting an online consultation on its proposed reforms. 

The OECD said "the vast majority" of commentators support its initiatives but acknowledged there were serious concerns about the complexity of the plans and that reaching an accord won't be easy. 

The OECD is seeking to secure widespread support, including that of the incoming administration of Joe Biden. 

It is looking "to get signals" from the new Biden White House as early as the G20 gathering next month of finance ministers, the OECD said. 

The European Commission and individual member countries may drive ahead with their plans for taxing large digital companies, such as Google and Amazon, if the OECD process were to fail or be delayed. 

The Irish Government has long said that keeping inevitable changes to global tax within the OECD orbit was the least bad outcome. 

In a briefing, Finance Minister Paschal Donohoe told journalists he believes that agreement within the OECD will be reached, but that it will take a little longer than some think. If the EU pushes ahead, it will likely focus narrowly on digital companies, he said. 

He reiterated that in time that Irish corporation tax revenues could fall by up to €2bn under global tax reform.

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