Sir, – A syndicated piece (“EU aims to tackle firms over tax avoidance”, Business, November 19th) contains a statement that Ireland has generous treaty provisions and relatively weak anti-abuse provisions. This is untrue, and damaging to Ireland’s international reputation.
Tax treaties are bilateral agreements – their terms are as generous or otherwise as both parties permit them to be. If our treaty say with Germany is “generous”, then it is just as generous to the German nation as it is to ours. We already have a general clause in our tax legislation to prevent abuse – it has been there since 1989, and predates, for example a comparable approach in the UK by some 20 years. We have transfer pricing legislation designed to internationally agreed standards.
I am not in a position to comment on the tax affairs of any one company, but I can confirm that we are indeed a base for the European operations of many multinationals. I would argue, however, that this should be a matter of pride. I am happier that our citizens can work and have good careers with successful multinational companies without having to take a plane or a boat to do so. It may be necessary when syndicating commentary from a foreign source to consider its accuracy. – Yours, etc,