The Minister of State at the Department of Finance, Mr. Brian Hayes TD, at a special ceremony at the OECD signed the Joint Council of Europe/OECD Convention on Mutual Administrative Assistance in Tax Matters. Doubtless the hope is that the formal acceptance of this Convention will help take some of the heat out of the international debate on Ireland's Corporation Tax policy. While Ireland has a track record of clean bills of health from the OECD on our tax behaviours, the more we are seen to be doing in the international arena the better. The recent elevation of Revenue Chairman Feehily to the Chair of the World Customs Organisation also contributes positively.

According to the official statement, the purpose of the Convention is to promote international co-operation by providing administrative assistance in tax matters to countries that are party to the Convention. The Convention which covers a wide range of taxes provides for the exchange of information for tax purposes and assistance in the recovery of taxes and service of documents between the Parties to the Convention. For example, it will enable Ireland to exchange information with countries who have joined the Convention but with which Ireland does not currently have a Double Taxation Agreement or a Tax Information Exchange Agreement. It will also enable Ireland to ask countries to assist us in the collection of our tax debts.

The Government expects to be in a position to ratify the Convention in early 2012 after the appropriate provisions have been enacted in domestic law to enable Ireland to provide the various types of assistance envisaged by the Convention.