Some thoughts on collapse of digital tax talks. While this is routinely presented in Ireland as ‘bad news’ for the economy, in truth the OECD process never had enough ‘bite’ to really change the dial on tech titan tax. 1/

The truth is that the only way to properly ensure the tech giants pay their fair share is via an EU digital tax model, implemented by the European Commission. National models won’t work. Given the exigencies attaching to Covid 19, a single EU approach is needed more than ever. 2/

Ireland's strategic position in the EU demands that we think carefully about the future: tax and competition policy are not the only game in town. A messy 'No Deal Brexit' denouement makes it even more imperative that we take a long term view about priorities + re-positioning. 7/

As @CliffTaylorIT @CiaranHancockIT and @NaomiOhReally point out, the collapse in talks means the EU digital tax is now firmly back on the agenda. Ireland should be supportive of moves towards an EU digital tax. The tech giants are going nowhere. 3/

Given the enormous challenges in resurrecting Covid-impaired member state economies, the issue of tax justice will be central to debates about the way forward. Ireland should not be on the wrong side of that debate. 6/

There are lots of other challenges presented by the sheer size and financial muscle of the tech giants, esp the monopolistic practices in search engine provision. So the issue of digital tax is firmly bound up with wider issues of regulation. 4/ https://www.bloomberg.com/news/articles/2020-06-02/eu-weighs-new-antitrust-powers-to-take-on-tech-giants

It is only at EU level that we can properly regulate these giant entities. The EU needs to take the lead on anti-trust legislation that goes beyond the admirable work done by @vestager and her colleagues. No member state - not even Germany - has the capacity to do what’s needed.5

Member states realise that taxing MNCs fairly has to be part of the solution to Covid recovery. And, in a context of significant budgetary retrenchment, they are likely to take an even dimmer view of member states associated with blatantly unfair tax regimes. 6/