Minister’s Brief

fully in line with the new OECD requirements in terms of both scope and standards. Handled
well, this could modernise our regime with a minimal loss of competitiveness.
A multi-lateral instrument is currently being discussed at OECD level, which will provide the
basis for implementing the OECD changes across the international tax treaty network. This is
to be ready for signature by end-year and you will need to take a decision at that stage about
whether Ireland signs it (the expectation is that we would, subject to the exact details being
worked out).
At EU level, there are a number of EU directives which address many of the same issues: the
anti-tax avoidance directive; a directive on country-by-country reporting which has already
been agreed; and a directive on interest and royalty flows. In high level terms our priorities
have been to ensure consistency with OECD BEPS and to fight against any attempt at EU level
to introduce minimum effective taxation – the latter could undermine our 12.5% rate and
encroach on Member State sovereignty. These issues are likely to feature on the Ecofin
Council of Ministers agenda in the months ahead. In particular, the Anti-Tax Avoidance
Directive will feature on the May Ecofin agenda and a decision will be needed as to what
extent Ireland can support the proposal.
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