Paschal Donohoe: Ireland's tax relationship with the US in a 'very good place'

Finance minister will meet US Treasury secretary Janet Yellen and discuss the Irish decision to join the OECD tax agreement

US Treasury secretary Janet Yellen said she rang Paschal Donohoe to implore him not to miss a "once in a generation" opportunity on tax alignment. Picture: Carolyn Kaster/AP

Ireland's relationship with the US is in a "very, very good place" on the issue of tax, the finance minister says.

Paschal Donohoe will today meet US Treasury secretary Janet Yellen before the two address the Institute of International and European Affairs (IIEA) later today.

Speaking on RTÉ's  Morning Ireland, Mr Donohoe said that Ms Yellen had been convinced that Ireland is not a tax haven because it does not share the characteristics of one.

He said that the pair will discuss the Irish decision to join the OECD tax agreement.

"I would describe it as a very, very positive and very constructive relationship," Mr Donohoe said. 

"The relationship country to country between Ireland and America couldn't be more positive and could not be more important."

The relationship between the two governments is very, very strong.

"The relationship that I have with Secretary Yellen — I've had a huge amount of contact with her in recent months — is in a very, very good place.

"The key features of a tax haven would be a country that has a very, very low or indeed a nil rate of tax for large companies, and it will be outside of international agreements and international tax law. 

"Ireland is neither. And in fact, a key thing we'll be discussing today is the seminal decision that Ireland has made to be part of a new global tax architecture."

Ms Yellen told yesterday's Business Post that she had rang Mr Donohoe to implore him not to miss a "once in a generation" opportunity on tax alignment. But Mr Donohoe said that he would not do the same on climate change.

US Treasury secretary Janet Yellen said she rang Paschal Donohoe to implore him not to miss a "once in a generation" opportunity on tax alignment. Picture: Carolyn Kaster/AP

"I'd be reviewing where we are in Ireland with regards to how we want to reduce our carbon emissions and I think when we all need to do so much together.

"I think we should shy away really from making lectures or despite the difficulties that other countries may have. 

"President Biden and Secretary Yellen are very much aware of the obligation of the United States House to reduce its carbon emissions, as I am as a member of the Irish government, and I think we'll be focusing on what we can do together."