DUBLIN: Ireland’s concerns over how the European Union should proceed with taxing large digital businesses are shared by a growing number of countries, Finance Minister Paschal Donohoe told Reuters on Monday.
Italy, France, Germany and Spain are pushing to change tax legislation for tech corporations accused of paying too little tax in the EU but have faced resistance from smaller nations like Ireland, who fear the reform could hurt their economies.
Ireland wants any tax reforms to be coordinated on a global basis and while the European Commission has pledged to follow the work being spearheaded by OECD in this area, it has also kept open the option of acting unilaterally.
“From talking bilaterally to a number of my (EU) colleagues since the meeting we had in Estonia (in September), the concerns that we have in relation to digital taxation are broadly shared…I would say by a growing number of countries,” Donohoe said in an interview in his Dublin office.
Ireland’s low 12.5 percent corporate tax rate has long made it a hub for investment from the likes of Google (GOOGL.O) and Facebook (FB.O). Dublin has found an ally in Hungary on the issue and has also been boosting alliances with Nordic and Baltic states since like-minded Britain voted in 2016 to leave the EU.
Donohoe said such alliances would help with his nomination of Irish central bank chief Philip Lane for the post of European Central Bank vice president.
