Sinn Féin Spokesperson on Foreign Affairs, Trade, and Diaspora, Seán Crowe TD, has called on the European Council to urgently propose measures to tackle tax evasion and improve tax collection efficiency throughout the EU when it meets today.

He said honest Irish taxpayers, who are struggling to make ends meet, need assurances that they are not propping up tax shy multi-national global giants.

Deputy Crowe, who raised the issue with the Taoiseach in the Dáil yesterday, said:

“Today’s European Council meeting will discuss tax policy, with a particular focus on tax collection and combatting tax evasion and fraud, and it is a timely discussion.

“This topic has been discussed with multinationals in parliaments in European member States and the US, and some of the findings have been disturbing with tax evasion and Ireland being linked in more than one parliament committee hearing.

“According to Herman Van Rompuy, a staggering €1 trillion is lost to tax evasion every year in EU member states. This is seven times’ the entire annual budget of the EU.

“We have heard reports by the US Congress that Apple is only paying a 2% tax rate here, well below the 12.5% statutory rate.

“In Britain last week, the House of Commons struggled to understand how Google could have a large sales staff in Britain operating and yet pay next to no tax on sales of about €4.7 billion there. We were told that Google was able to do that because of our supposedly lax and light-touch tax regime.

“Although this State has avoided being labelled a tax haven by international bodies such as the OECD, some academics and high profile economists believe that we are.

“It seems that we are operating two very different tax systems, one for big multinational corporations and a second more onerous system for smaller companies and individuals. This is not a fair system of commerce and is undoubtedly hurting our domestic economy.

“It is also hurting PAYE workers, many of whom already feel that the tax system is unfair, unjust and puts the heavy burden on low and middle income workers. SMEs are finding it increasingly difficult to set up or continue business in Ireland due to the high costs they incur and they cannot avail of these lavish schemes.

“This is contributing to our stagnant economy and keeping unemployment currently at 14%.

“PAYE workers are also bearing the brunt of tax increases and social spending cuts that this Government has implemented, yet wealthy influential corporations are able to escape without paying their fair share through loopholes or other tax avoidance measures.

“Investments from multinational corporations in Ireland have provided much for the State in terms of job creation and payroll taxes, and these jobs need to be protected, but not at any price.

“This whole issue is about protecting the fairness and credibility of our tax system. People want to see this in respect of these major companies as well.

“At the European Council the Taoiseach needs to ensure that the sacrifices of honest Irish taxpayers, who are struggling to make ends meet, are not propping up many of these tax shy global giants.

“Europe and Ireland must pursue a new global system where multinationals publish their revenues, profits and other key corporate information which would be useful to revenue authorities in each country in which they are based and operate.

“All EU countries need to improve their tax collection efficiency and tackle tax evasion and fraud because it is ordinary workers and their families who are paying for the shortfall in revenue.”

ENDS