Ireland’s Donohoe Says Global Tax Deal ‘More Likely Than Ever’
(Bloomberg) -- Ireland’s Finance Minister Paschal Donohoe predicted that world leaders will agree on a global tax accord that includes a minimum corporate rate, signaling that his country, a holdout for now, may accept an eventual compromise.
“It is more likely than ever” that a deal will be struck, Donohoe told the Aspen Security Forum on Wednesday. He added that “we do have some work and some engagement to do” and that it’s somewhat less likely that a plan will actually be implemented.
The U.S. is among more than 130 countries that have agreed in principle to an overhaul of global taxation with two parts: a minimum tax rate of at least 15%, to avoid competing by dangling low tax rates before multinational companies, and rules to allow countries to collect levies on local services from big tech companies like Facebook Inc. and Alphabet Inc.’s Google.
But Donohoe last month reiterated his commitment to retaining Ireland’s 12.5% tax rate, amid reports the government would accept an increase.
Treasury Secretary Janet Yellen and other finance ministers are trying to complete details of the global tax overhaul as President Joe Biden pursues his efforts to raise U.S. corporate taxes to help fund a $4 trillion economic-investment agenda.
Noting an improvement in transatlantic relations in his other role as president of the Eurogroup, Donohoe said Yellen recently spent 1 1/2 hours with European Union finance ministers in frank and open discussions.
“That is a change in tone and a dial-up in engagement,” Donohoe said.
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