A multilateral approach to tax policies

 

A chara, – In a recent speech on corporate taxation policy, Minister for Finance Paschal Donohoe rejected proposals for an international agreement on a minimum effective corporate tax rate to combat tax avoidance by multinational companies, defending Ireland’s right to set its own tax rate.

Later in the same speech, Mr Donohoe criticised proposals of certain countries to introduce a digital sales tax of their own, arguing instead for a multilateral approach which he considered to be “better than some countries acting unilaterally”.

There is a clear inconsistency between these two positions. Either Mr Donohoe favours international agreement on corporate tax policy or he favours the right of individual countries to act unilaterally in what they consider to be their own interests. He cannot have it both ways.

Ironically, Mr Donohoe argued in his speech that the introduction by certain countries of their own digital sales tax would “exacerbate international economic tensions”. Surely he must be aware that Ireland’s tax policies have already generated substantial tensions between this country and a number of other EU member states. – Is mise,

PROINNSIAS

BREATHNACH,

Maynooth,

Co Kildare.