Non! Leo stays firm against Paris tax plan
Taoiseach in ‘robust exchanges’ with French leader
LEO Varadkar took a firm line on Ireland’s tax independence during a ‘robust exchange’ with French President Emmanuel Macron in Paris yesterday.
The Taoiseach said now was ‘not the time to be threatening vetoes’ but added that Ireland has ‘a difference of opinion’ with France about how to tackle tax avoidance by large digital companies.
The French government alarmed politicians here in September when it raised the idea of an ‘equalisation tax’ that would collect levies from tech firms based on how much revenue they earn in each EU state.
The plan would obviously suit larger countries, where more revenue in generated, so it won early support from nations such as Germany, Spain and Italy but met with resistance from some smaller nations.
And yesterday, after meeting President Macron at the Élysée Palace, Mr Varadkar said: ‘We both agree that internet companies should pay their fair share of tax and be proper global corporate citizens. We have a view that this movement should be internationally led by the OECD (the Organisation for Economic Cooperation and Development). France has a view that it’s best led by the European Union.
‘We agreed last week [at the EU summit in Brussels] that we would welcome proposals from the European Commission early in 2018, and I look forward to seeing what plans they have. But it’s very much the view of the Irish Government – and lots of other countries share the view – that the digital economy and digital companies are global, and what we need is a global solution.
‘That’s best done through the OECD, based here in Paris, through French leadership.’ France takes over the Presidency of the OECD in January.’
He added: ‘What we don’t want to do is impose a new tax on internet companies that actually benefits non-EU countries. That would be counter-productive. As far as we’re concerned tax remains a national competency, but we’re not the only country that takes that view. I don’t want to be threatening vetoes, that’s not the best way to engage in European diplomacy and I think we should try to come to an agreement.’
He added that the discussion had been ‘robust’ but positive. ‘It was a very detailed conversation in that regard, much more so than normally in a meeting like this,’ he said. He also thanked Mr Macron for ‘his support and solidarity’ on Brexit, and the French president said: ‘We discussed the consequences of the Brexit for both our countries.
‘The 27 [member states less the UK] remain united, and with the more constructive approach from the UK, hope to find progress. An Ireland solution is at the heart of the EU solution because Brexit affects Ireland primarily. It is the responsibility of the UK to propose solutions.
‘After Brexit, France will be Ireland’s closest EU member. We want to strengthen bilateral co-operation.’