LEO VARADKAR admitted that his claim that any corporate tax change “will not impact the average Irish business” has yet to be accepted.

The Tánaiste said on Tuesday that if Ireland signs an Organization for Economic Co-operation and Development (OECD) agreement on a global minimum corporate tax rate, it would only apply to companies earning more than 750 million US dollars (640 million euros) per year. year.

But speaking on Friday, Varadkar admitted that while the proposal is on the table, it has yet to be agreed and is still under negotiation.

This is the current proposal on the table, that it would only apply to companies with that level of turnover. But it is not yet agreed, it is still under negotiation.

He said: “I guess what’s on the table now, which is the OECD proposal, which would apply to companies with a turnover of over $ 750 million.

“This is the current proposal on the table, that it would only apply to companies with that level of turnover. But this is not yet agreed, it is still under negotiation.

On Tuesday Varadkar said: ‘Any deal that we may or may not reach will not impact the average Irish business. This will not have an impact even on large companies or mid caps, the rate of 12.5% ​​will remain in place for them.

“Any change – if there is a change, we do not commit to any of the cases – would only apply to these very large companies. “

Mr Varadkar’s previous claim was challenged by Sinn Fein at an Oireachtas committee on Thursday.

Mairead Farrell TD asked Finance Minister Paschal Donohoe if the European Commission would allow Ireland, if the OECD agreement is signed, to apply two different corporate tax rates simultaneously.

“Our ability to do this will depend on the final decision we take on the OECD process,” Donohoe said.

Asked later by Pearse Doherty of Sinn Fein whether Mr Varadkar’s remarks were “correct”, the finance minister said: “What the Tanaist is doing refers to the current OECD agreement, and he is right to make that reference. “

Doherty asked if the European Commission had approved such an approach to corporate tax.

“This is an important question of detail that I will be, and want to, answer if we make the decision to conclude the OECD deal,” Donohoe said.

He said he was engaging with the European Commission “on this issue and others”.

Doherty, in an exchange with the finance minister, accused Varadkar of providing false certainty to companies.

Speaking to RTÉ’s News at One on Friday, Varadkar said the proposal to have two separate corporate tax rates would require approval from the European Commission.

#open journalism

No news is bad news
Support the journal

Your contributions will help us continue to deliver the stories that are important to you

Support us now

He said: “We had envisioned that if we could come to an agreement internationally, then this should be backed up by a European directive.”

Varadkar also urged EU leaders not to set a higher corporate tax rate than what was ultimately agreed in OECD negotiations.

“One thing we say to our partners in the European Union is that if there is an international agreement, the European Union should stick to it. He shouldn’t try to plate it in gold, ”he said.

“He shouldn’t try to make it different from the international agreement. if you want. If, for example, 15% is what is agreed internationally, it should be the EU rate, it should not be higher. “

Ireland is still in talks with the OECD on the proposed reform of global tax rules, already accepted by 130 countries.

Ireland is one of nine countries not to sign the deal and is reluctant to give up its 12.5% ​​rate, but is under increasing international pressure to do so.