RTE has today reported that discussions are under way between Irish and US officials with regard to updating existing tax agreements between the two countries.
The Department of Finance said the talks follow a move by the US earlier this year, where it updated its 'Model Tax Treaty' - a baseline text the US Treasury Department uses when it negotiates tax treaties.
The updated US model includes provisions intended to eliminate double taxation without creating opportunities for non-taxation or reduced taxation through tax evasion or avoidance.
Tax arrangements between US multinationals and EU member states have been placed in the spotlight in recent times after the EU Commission launched a number of high-profile investigations.
In 2014 European authorities opened a probe into Apple's tax arrangements with Ireland, and in preliminary findings, said the US firm's tax status here was improperly designed to give the company a financial boost in exchange for jobs in the country.
The verdict in this investigation is expected in the autumn.
Ireland's existing tax arrangement with the US - the Double Tax Treaty - was signed in 1997, with a protocol to the treaty signed in 1999.
Tax negotiations between Ireland and the US follow the OECD Base Erosion and Profit Shifting (BEPS) reports last October, which made a number of recommendations for updating tax treaties globally.
According to RTE, the department said Ireland is "now actively engaged in implementing the BEPS recommendations both domestically and through international agreements".
Source: www.businessworld.ie
