Mr. Ronan Hession:

We reject completely the characterisation as a tax haven.

We do not meet any international definition of a tax haven. As far as we are concerned we have a transparent statute-based tax system. We do not agree with that characterisation of our system. We have already agreed the anti-avoidance measures in this proposal in the anti-tax avoidance directive. That is not consistent with being an apologist for tax avoidance.

Analysis of the previous proposal and the Commission's initial figures, which we have yet to discuss in full with the Commission, indicate that it will eat into our tax base. If that turns out to be true, our understanding of the fiscal rules is that will have to be paid for some other way by a cutback in services or taxes raised elsewhere. The analysis in 2011 was that increasing the rate would not deliver that. We have to be mindful that we are going into this with an open mind but not an empty mind. We are aware where the pinch points are but our analytical scepticism is a prudent point of view not to defend any particular-----