Janet Yellen urges Paschal Donohoe to accept OECD tax deal

US treasury secretary hails ‘once in a generation opportunity’

US treasury secretary Janet Yellen urged the Minister for Finance Paschal Donohoe to take a "once in a generation opportunity" for a global deal that would stop a race to the bottom on corporate tax rates, the US Treasury said on Wednesday.

Despite pressure from Ms Yellen and EU officials, the Republic has not wavered in its opposition as an October deadline approaches to finalise a deal for a global minimum tax of at least 15 per cent, well above the State’s 12.5 per cent rate.

Mr Donohoe said on Monday that Ireland was “still some bit away” from joining the Organisation for Economic Cooperation and Development (OECD) tax agreement as he waits to see whether a deeply divided US Congress will accept the Biden administration’s proposed tax increases.


Ms Yellen, during a call with Mr Donohoe, “expressed appreciation for Ireland’s constructive participation” in the OECD tax reform talks, and the two ministers agreed to keep in close communication on the issue, the Treasury said in a statement.


“Secretary Yellen emphasised the goal of stabilizing the international tax system and stopping the race to the bottom through this once in a generation opportunity offered by the OECD Inclusive Framework,” the Treasury added. – Reuters