The Minister for Finance says there is going to be a big shakeup in global corporation tax rules over the next 18 months.

Paschal Donohoe said he is expecting a renewed push by the US and European governments to change the way digital companies are taxed. 

With many of the leading US digital companies resident in Ireland for international tax purposes, Mr Donohoe said it is important that Ireland does not get caught in a tax dispute that could impact on trade and investment decisions by multinational companies.

Mr Donohoe made his comments at the Global Tax Policy Conference at Dublin Castle today.

He said the Oranisation for Economic Cooperation and Development was the right forum for changing international rules, and said unilateral attempts to bring in so called digital taxes were unwise.

He said he was not convinced that minimum effective global corporate tax rates were an appropriate approach.

He said any reform should stick to the established principle that taxing rights should be aligned with substance and value creation, and that the bulk of profits should remain taxable in exporting countries, rather than importing countries.

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The Finance Minister also said today the risk that Britain leaves the European Union without an exit deal is increasing. 

"I still believe it is very much possible for an agreement to be reached ... but we can all see, and we are all aware of, the strain and pressure that is building in the UK on the back of the European Parliament elections," Donohoe told reporters.

"The risks of a no-deal Brexit scenario facing Ireland later on this year are building," he added.