I propose to take Questions Nos. 71 to 73, inclusive, together.
Last October a two-pillar solution to address the tax challenges arising from the digitalisation of the economy was agreed at the OECD. It is expected that the Agreement will bring long-term stability and certainty to the international tax framework arising from discussions which have taken place.
Pillar Two of the agreement provides for a minimum effective tax rate of 15% for in-scope businesses (MNEs with annual turnover in excess of €750m). In the EU, this Pillar of the agreement will be implemented through the EU Minimum Tax Directive.
Although political agreement has not yet been achieved on this proposal, I am fully supportive of the Czech Presidency's efforts to resolve this and it remains my belief that the Directive will be agreed by all Member States in the near term. The EU Minimum Tax Directive will ultimately bring long-term stability and certainty to the international tax framework by ensuring there is a consistent and co-ordinated application of the minimum tax rules across EU Member States.
Domestically, I have recently held a public consultation on the implementation of this Directive in Ireland. We are progressing with our preparations for domestic implementation by the proposed deadline of end-2023.
I am aware that some are frustrated at the pace of progress and would prefer to proceed with this legislation using the enhanced cooperation provision of the EU treaties. I have made it known that I do not see the merit of pursuing such an option and it is my strong preference to have the EU Minimum Tax Directive agreed by all Member States. I believe that all EU Member States can come on board and agree this file and I am happy to continue to work towards this achievable goal.
Furthermore, Ireland's position on tax is well known and clear. Direct tax is a Member State competence and tax decisions are taken by unanimity.
In respect of the potential economic impact of the agreement, my officials continue to assess all potential implications for investment and tax receipts. There remain, as of yet, a number of key undecided aspects of both Pillars of the OECD agreement which will have a material impact on the likely cost of the agreement in terms of reduced tax receipts. I can assure the Deputy that both my officials I and remain fully engaged in that process and are working to ensure that Ireland will continue to be an attractive location for both companies that have already chosen Ireland as their home and for future foreign direct investment.