Speech by Tánaiste and Minister for Finance Simon Harris at the Irish Tax Institute Annual Dinner

Introduction

Good evening, Ladies & Gentlemen, Oireachtas colleagues, Revenue Chair & Commissioners, and a good proportion of my Department….  

I’m not used to seeing you this late on a Friday….  

I jest of course. The Department of Finance practically runs on midnight oil at various points throughout the year. 

Thank you, Martin, for the introduction and thank you to your President, Shane Wallace, for your invitation to be here.

I know that the annual Irish Tax Institute dinner is an important occasion with the best and brightest of the tax profession here tonight.

I am grateful to have the opportunity to be with you all on this Friday evening. 

Now, I know there is nothing more those of you like in the tax profession than stability and certainty.

So when you first extended this invitation, you extended it to my predecessor.

Confident that in this world of chaos we inhabit, that was one constant that could not change. 

So… I know it went against everything the tax profession enjoys when he surprised us all by announcing his departure from public life a number of months ago. 

And with that came a brief moment of instability and uncertainty… until it was confirmed I would be taking on the role as Minister for Finance.

I am reliably informed there are two staples in the Minister for Finance’s diary.

The Budget and tonight’s dinner.

So, thank you again for having me here this evening. I hope we can use this opportunity to cement the important relationship you have in working with Government to develop pro-growth tax policy.

Economic Outlook and Trade Developments

Given the emphasis on stability and certainty, you might expect successive Ministers for Finance would be able to dust down and deliver the same speech every year.

But we know the world we are living in is increasingly more changeable, more protectionist. 

We are daily responding to uncertainty caused by external and international events.

Everyone in this room will be aware of the US Supreme Court’s decision this day last week on tariffs, as well as the US administration’s response - the main takeaway from all of this is that trade policy uncertainty remains a key feature of the global environment and this is likely to persist.

The EU-US Statement agreed in August last year allows for a 15 per cent tariff ceiling, with certain carve outs on EU exports to the US.  

I would hope that the EU deal will be honoured. Indeed, this is something that has been signalled by the US administration.

That is why the European Commission is engaging closely with the US Government on next steps, with the ultimate aim of preserving a stable, predictable transatlantic trading environment, while also acting as a global anchor for rules-based trade. 

In any case, a crucial point for Ireland is that the US has announced a number of exemptions from the global tariffs including for pharmaceuticals and pharmaceutical ingredients.

Ultimately, however, the current level of uncertainty underscores the need to control what we can control and influence at a domestic level. 

This is why the Government has committed to investing in productivity-enhancing infrastructure that underpins long-term growth in the National Development Plan.

Government is determined that this is not just about more money – it’s also about improving delivery.  

We are taking a transformative approach to streamlining development processes and reforming our regulatory environment.

We are investing in long term funds to ensure that we are in the strongest possible position to future structural challenges. 

Finally, the Government’s Medium Term Fiscal Plan brings all of these plans together in one coherent budgetary strategy.

Evidence of Resilience

Despite the turmoil, our economy has continued to display remarkable resilience.

Nowhere is this more evident than in the labour market. 

Today, more than 2.83 million people are at work – the highest level ever recorded in the State. 

The unemployment rate has now remained below 5 per cent for the last four years. 

That is a remarkable achievement given the significant global headwinds we have faced during this period.

Looking ahead, we are projecting employment growth to remain solid – with an additional 41,000 jobs anticipated this year. 

The strength of our labour market is consistent with developments in the domestic economy.

Modified Domestic Demand – a good proxy for domestic economic activity – expanded by around 4 per cent in 2025. 

Resilience in both investment and consumer spending has continued, reflecting confidence in our economy among firms and households in the face of a more uncertain external backdrop.

I very much appreciate that this aligns with your own views, and I agree with you, Shane, when you said Ireland must reinforce our reputation as a reliable and transparent jurisdiction – one where investors can make long-term decisions with confidence. 

Update on Ireland’s implementation plans to adopt the OECD Pillar Two “Side by Side” Package

Recently, I travelled to the West Coast of the United States where I met key business leaders and political representatives. 

The overarching theme of the visit centred around the evolving global economy and the future of AI, and how to both keep pace with and leverage these developments. This will be a challenge for all of us. 

It is my firm conviction that Ireland must remain committed to the benefits of multilateral solutions to shared problems.

This is why we originally signed up to the OECD two-pillar solution to global minimum tax in October 2021, and also, joined the global consensus on the Side-by-Side package agreed at the beginning of this year.

Ireland faces an outsized impact from trade uncertainty, which is why I considered the Side-by-Side agreement critical, circumventing the possibility of damaging retaliatory measures and tax disputes which would have emerged if the impasse was not resolved.

In the current circumstances, this was a significant achievement for the multilateral system, especially in the politically sensitive and complex field of taxation.

The stability offered by this agreement provides businesses with the capacity to make strategic choices and investment decisions with significantly more clarity in relation to taxation.

This is crucial at a time when the trade environment isn’t as stable. It underlines the global commitment to ensuring a level playing field and protecting the foundations of a prosperous international business landscape.

The agreement also focused on the other levers available to us to maximise competitiveness and address broadly held concerns with the complexity of the Pillar Two rules.

Significant simplification was included in the agreement and additional work is urgently underway to provide further improvements and reduce the compliance burden on all businesses. 

Ireland is also championing the importance and urgency of further administrative guidance at the OECD to ensure the smooth functioning of the new and pre-existing rules. 

Meanwhile, my Department and the Revenue Commissioners are working to implement the required legislation as soon as possible, with retrospective effect to 1 January 2026 as agreed.

Naturally, this can’t happen without due process, so we will be actively engaging with all members to develop this legislation and deliver it through the Finance Bill later this year. 

The coming months will also see a resumption on discussions around the taxation of the digital economy. 

Ireland continues to support a multilateral agreement in this area, provided such a solution can be broadly adopted and implemented in an efficient manner. 

I know this will be a matter of concern for you.

I believe that through engaging in global negotiations we can avoid a situation where a proliferation of uncoordinated unilateral measures are established, with disputes inevitably arising from such measures. I will continue to lend my support to constructive engagements to solve such issues - at the EU, OECD and G20. 

Ireland’s EU Presidency Priorities – Simplification and Competitiveness

As you know, Ireland will hold the Presidency of the EU Council in the second half of the year.

We will use our Presidency to lead the European agenda and deliver for citizens across the continent, and at home. 

This is because our strongest national response to these global challenges is a stronger Europe. 

During the Presidency, I will chair the ECOFIN Council where Ireland will shape and drive the agenda and will be focused on advancing EU competitiveness and simplification.

Simplification is at the heart of the EU’s Strategic Agenda for 2024-29. 

Ireland views simplification in the tax arena as a unique opportunity for the EU to look holistically at the existing tax rules with a view to enhancing EU competitiveness.

Simplification will help reduce red tape, cut regulatory costs, and unlock the potential of firms and institutions to support European competitiveness. 

The Commission’s Tax Omnibus proposal, which is expected to be published right before our Presidency begins, will play an important role.

Simplification should be not only a backward-looking exercise, but a forward-looking one too. We should prioritise simplicity in future EU policies.

I know that the ITI has engaged with us in respect of the key themes that should guide the Irish Presidency in its work on direct and indirect tax policy and I thank you for this crucial feedback.

You said we should focus on three key areas: 

• firstly, reducing the administrative burdens for taxpayers;
• secondly, simplification of EU rules; 
• and thirdly, competitiveness. 

All three will be core parts of the Presidency. 

Domestic Simplification and Competitiveness

Of course, I know domestic simplification and competitiveness are also key for you.

I know it is a theme of yours as well, Shane, and it has become a bit of a mantra for me, but it goes back again to controlling what we can control. This clearly fits into that category.

We work with you on many of these matters and ensure that we review business incentives to ensure they are as effective as possible.   We did it recently with the R&D tax credit ahead of the last Budget.

I know you have been engaging with us on the review of Ireland’s taxation regime for interest. 

This review seeks to deliver a simplified and competitive taxation regime for interest, which is aligned with international best practice, and which protects the tax base. 

I thank you for your valuable engagement with this process.

Saving and Investment Accounts 

Before concluding, I also want to very much align with your views on doing more to encourage and incentivise investment. 

It’s an area that I feel very passionate about, and that is why we are focused on making people’s savings work better for them.

There’s no doubt we are lagging behind other countries when it comes to supporting retail investment and long-term savings. 

So, a Savings and Investment Account – is a key priority for me over the course of the next two budgets. 

In the coming weeks, I intend to bring a strategy to Government that will set out the principles and the tax framework that will guide our approach. 

We will shortly be issuing invites to a Saving and Investment Forum and would welcome your participation in this upcoming event. 

I was in Cork earlier today before I came back up for this dinner and on local radio the presenter expressed the view to me, with the lyrical flair we expect from the rebel county, that he never experienced the tax man give him something with one hand without taking it away with the other.

As a practising politician, I am no stranger to the healthy scepticism many members of the Irish public espouse, but I am genuinely excited that this will be a positive new departure in the Irish economy and for the Irish people.  A genuine win/win from the tax man, I hope!

Conclusion

In conclusion, in uncertain times, we value our institutions all the more. 

The Irish Tax Institute has been serving us well, for almost 60 years. If I’m right, I think it’s your diamond anniversary next year.

You have evolved alongside the evolution of Irish tax policy, and I know the alignment will continue between my Department and your members, and stakeholders.

Through speaking with practitioners that have hands-on experience, we can ensure that our tax policy is meeting its objective and having a positive effect.

As the upcoming Budget will be my first as Minister for Finance, I look forward, with keen interest, to your Fantasy Budget competition, and await – with some anxiety – the critical analysis of the participating teams. Seriously, I thought last year’s winners brought forward some very impressive recommendations and I have no doubt they will do so again.

Ladies and gentlemen, I’m afraid there is no doubt we are in a period where the global landscape is shifting. 

But I also have no doubt of our ability to keep our heads and keep our feet.

At a time of rapid change, we must generate our own certainty.

At a time of unpredictability, we must create reliable stability.

Maintaining an attractive business environment is a non-negotiable. 

We have the advantage that we are operating against a backdrop of resilience, a record of responding to unforeseen challenges successfully and a robust economy.

And no matter how much uncertainty there is, there are also always certainties…..

No matter what the year ahead may bring, there are always things you can count on…..

The Budget and the Irish Tax Institute Dinner.

Thank you again for hosting me, enjoy the rest of your evening!

ENDS