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Christian Aid welcomes spillover analysis but reserves judgement on its usefulness

13 October 2015 - Christian Aid today welcomed publication of the government’s spillover analysis, but reserved judgement on its usefulness until seeing how the government choses to respond to the findings of the analysis.

Sorley McCaughey Head of Advocacy and Policy at Christian Aid, said, ‘The analysis is a useful piece of work, and addresses key issues around corporate transparency, developing country involvement in international discussions, and capacity building. However, until we see how the government choses to respond to these important areas, it will be difficult to see just how useful this analysis has been.’

‘One of the issues raised by the report- that the data was not available to assess whether companies have been using Ireland to deplete revenue in developing countries, is essentially an argument for greater transparency from multinationals.

‘A publicly available country by country report on the activities of multinationals in each of the countries in which they operate would provide the data necessary to assess the true level of spillover as a result of Irish tax policy.’

The charity also identified a role for Ireland in pushing for a similar study to be taken across Europe.

Mr. McCaughey said, ‘While Ireland’s treaty links and trade flows with developing countries may be comparatively small, those from the UK or Luxembourg are not. It would be of great value were Ireland to use its experience of having conducted a spillover analysis, to now push for an EU wide analysis, and some common EU principles on negotiating tax treaties with developing countries.

The charity also encourages the government to support further research into the impacts of low corporation tax rates on the economies of developing countries.

‘The IMF recently said that low corporation tax rates may force down corporation tax rates in developing countries, and at the very least, should require further analysis. As a country with one of the lowest CT rates in Europe, Ireland should take the lead in supporting this work.’ Mr. McCaughey said.

 

For further information contact Sorley McCaughey on 087 062 0062, Florence Mutesasira on 086 160 9405 or Barry Turley on 0044 7734 256318.


Notes to editors:

• Christian Aid has campaigned for tax justice since 2008 because tax is the most effective, sustainable and legitimate source of finance for development.

• For a more detailed review of the OECD’s proposals to reform multinational taxation, see the three-page briefing produced by the Global Alliance for Tax Justice, of which Christian Aid is a member.

• Christian Aid works in some of the world's poorest communities in around 50 countries at any one time. We act where there is great need, regardless of religion, helping people to live a full life, free from poverty. We provide urgent, practical and effective assistance in tackling the root causes of poverty as well as its effects.

• Christian Aid’s core belief is that the world can and must be changed so that poverty is ended: this is what we stand for. Everything we do is about ending poverty and injustice: swiftly, effectively, sustainably. Our strategy document ‘From Inspiration to Impact’ outlines how we set about this task.

• Christian Aid is a member of the ACT Alliance, a global coalition of more than 130 churches and church-related organisations that work together in humanitarian assistance, advocacy and development. Further details at http://actalliance.org

• For more information about the work of Christian Aid visit www.christianaid.ie

 

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