Finance Minister praises role of US treasury in global tax reform

He said the reform would create conditions for “long-term certainty for businesses and investors” in Ireland.
Finance Minister praises role of US treasury in global tax reform

By Associated Press Reporter

Finance Minister Paschal Donohoe, speaking at an Institute of International and European Affairs (IIEA) event in Dublin Castle, praised US Treasury Secretary Janet Yellen’s role in the reaching of a global deal on tax reform.

“The leadership shown by Secretary Yellen since taking office was instrumental in brokering a fair and balanced agreement for all,” Mr Donohoe said.

He said it would create conditions for “long-term certainty for businesses and investors” in Ireland.

Mr Donohoe thanked Ms Yellen for her “understanding” of Ireland and the country’s perspective on tax reform.

“Our values, our heritage, our future, means that Ireland should be influencing, shaping and inside international agreements,” he said.

Ms Yellen denied that the United States had “cajoled” Ireland into dropping its 12.5% corporate tax rate for the new global minimum of 15 per cent

She said: “Well, I really personally wouldn’t use the word cajole.

“I think we’ve had very productive meetings in which we have tried to understand the viewpoint of Ireland about these tax negotiations and its needs in terms of being able to sign on to this.

US perspective

“Also, Minister Donohoe has been terrific in trying to understand the US perspective. I think we’ve had very productive exchange of views over the last several months.”

She added: “Ireland, perhaps once upon a time, the low tax rate was important in attracting countries to Ireland.

“But our strong view is that Ireland has tremendous advantages as a country with an educated workforce and an excellent business environment and that that will continue to serve Ireland’s economic interests.”

The European Commission is to develop proposals on implementing the new OECD global minimum corporate tax rate in the coming weeks, Finance Minister Paschal Donohoe has said.

Mr Donohoe, who also serves as president of the Eurogroup of finance ministers, was speaking at a joint press conference with US secretary of the treasury, Janet Yellen.

He said: “In the coming weeks and months, you will see the commission begin to develop its proposal to do this.

Global change

“And we in turn would hope that will enable Secretary Yellen to be able to point to the progress that is happening, and the fact that the friends and partners of the United States of America are playing our part in implementing this change.

“We have absolute confidence in the work that is underway now, with respect to this historic change in America.

“But this is a global change, in order everybody to have confidence that it’s going to happen, we all need to play our part.”

US secretary of the treasury Janet Yellen has said the new global minimum corporate tax rate of 15 per cent is unlikely to be changed.

Speaking at a press conference at Government Buildings in Dublin, Ms Yellen said: “I think we have agreed that 15 per cent is the global minimum tax.

“Now, of course, individual countries may choose themselves to establish a higher tax, but I expect many countries to adopt the 15 per cent tax."

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