- 3 min read
- Published: 6th November 2017
Time for Irish Government to back tax transparency reforms
6 November 2017
Ireland needs to get on board with proposed EU reforms which would tackle the type of scandalous activity revealed in the Paradise Papers, Oxfam Ireland has said today.
Information released in the papers has shed new light on the role played by Irish banks that allowed some of the world’s most profitable corporations significantly reduce their tax bills. Further details of Ireland’s involvement are also scheduled to be released.
Oxfam Ireland, CEO Jim Clarken said; “I wish I could say that I was surprised by the detail contained in the Paradise Papers and Ireland’s suggested involvement. However, we’ve been here before with the Panama Papers and other leaks. Nevertheless, we can’t just shrug our shoulders and accept this as a part of international commerce.
Tangible options are now available to put a stop to this murky world where corporations and the super-rich cheat governments out of billions in revenue.
Ireland now has the opportunity to show leadership by supporting EU proposals aimed at fighting this type of tax evasion. This is especially important considering that our own country’s tax arrangements have been implicated as facilitating some of these nefarious practices. So now is the opportune time for the Irish Government to show their support for these reforms.”
Specifically, the Irish Government now needs to support:
• Public Country by country reporting: This requires large multinational companies to disclose where they generate profits. This means that companies would have to pay taxes in the country where the profits are made. Currently, they declare profits in offshore havens where in reality, the company has little or no activity and pay miniscule tax.
• Establish a “blacklist” of non-tax compliant countries: Compile a list of those nations which refuse to adhere to international tax rules. Listed countries should face stiff penalties. Currently Trinidad and Tobago is the only blacklisted country in the world which is not credible.
Jim Clarken said; “At the core of these reforms is transparency. These is no legitimate reason for big corporations to hide their tax affairs. The only reason multi-national companies use these offshore funds is to allow them avoid paying their fair share of tax. Tax that could be used in Ireland and in poorer nations to help fund health, education and other social services.
The Irish government must show commitment to playing its part in tackling this global scandal by supporting reform measures at EU level. In the past, the Irish Government claims that it fulfils international standards in tax transparency as set out by the OECD. However, under these transparency standards the tax information of multinational companies remains secret.
These so-called ‘transparency measures’ haven’t prevented the abuses we are seeing in the Paradise Papers. It is obvious that public reporting is needed to end these abuses once and for all.
Government has said that tax avoidance is a problem best tackled at international level. Now is their opportunity to be part of this global response by dropping its opposition to these vital reforms.”
Oxfam estimates that over $7 trillion of personal wealth is hidden in these offshore accounts. At least $100 billion of tax revenue is lost to developing countries alone every year. Even if half of this money was paid in taxes, the lives of 8 million women, children and babies would be saved. Ireland, the lack of tax revenue leads to essential services being cut or additional taxes imposed on ordinary citizens.
ENDS
REPUBLIC OF IRELAND: Daniel English on +353 (0) 86 354 4954 / daniel.english@oxfamireland.org
NORTHERN IRELAND: Phillip Graham on +44 (0) 7841 102535 / phillip.graham@oxfamireland.org
