The Minister for Finance has warned that "a great deal of work" remains to be done before a workable agreement on reforming the international corporation tax system is reached at the OECD.

Speaking at PWC/ Irish Times Tax Summit today, Paschal Donohoe said that agreements must be global in nature and not just decided among the largest countries.

Mr Donohoe also cautioned that whatever emerges from the discussions at OECD will be "disruptive" and "bumpy".

"These discussions are particularly difficult for small open, export orientated countries such as ours but we must engage and make our voice heard," the Minister said. 

He said it is in Ireland's interest that this work is successful at ensuring the continuation of a stable and consensus-based international tax framework into the future.

"The certainty and stability that such agreement would bring to the international tax landscape would allow companies to make investment decisions with greater confidence and would facilitate countries' fiscal planning supporting economic growth and job creation," Mr Donohoe said. 

The Finance Minister said he firmly believes that all companies must pay their fair share of tax.

But he added that any lasting solution to the digitalisation of the economy must not come at the expense of fair and legitimate tax competition.

"Competition is a driver of efficiency, and tax competition is particularly important for smaller economies," he stated, adding that competitiveness is not just a prerogative of large countries.

He also said that "fair tax competition" is a vital tool to ensure that smaller countries can compete against the size, geographical location or resource advantages other countries may enjoy. 

On the Budget, Minister Donohoe said that because of the assumption made about the nature of Brexit, the decisions on tax measures that will be introduced on Budget Day will be made in a unique context.

"In a no-deal scenario it is likely that, while tax revenues will continue to grow, the rate of that growth will be lower than initially forecast," Mr Donohoe said. 

He also said that a possible increase in social welfare expenditure will have a significant impact on the public finances regardless of any specific tax changes announced next month.

"This will be a safe Budget that protects the progress we have made and prepares us for the future," the Minister added.