Mr. Conor O'Brien:

Not in my view, unless one takes the view that an effective tax rate in or around 12.2% or 12.5% constitutes a tax haven. That, in turn, depends on what one views as the minimum acceptable level of corporation tax. The 2% rate that has been quoted widely is a bogus rate based on companies that are not tax resident in Ireland. Such companies are incorporated in Ireland but that is a different concept. This bogus number has been picked up in the international press and repeated throughout the web and so on and it has been used to beat Ireland. It is most unfortunate that what I regard as an inaccurate or misleading statistic has been picked up in this way. I went through the matter in the paper and the Department of Finance paper comes to a similar conclusion. Mr. Taft's paper comes to a 9% rate, which is not a million miles away. It is probably too micro to get into the differences between the 9% rate and the 12.2% rate but certainly it is not 2%; that is simply misleading.

Under the Irish regime we have set out our stall under a 12.5% rate along with research and development tax credits, which can reduce the rates somewhat. That is what we offer to the world and we offer it based on profits that are properly allocated to Ireland. Broadly speaking, that is fine as an offering. It is similar to the offering of some other similar countries. For example, countries such as Singapore and Switzerland, which compete with us for foreign direct investment, offer similar regimes. We are not an outlier in that regard.

Across the Border in Northern Ireland, which has not had the benefit of as low a corporation tax rate, they are trying to catch up. The United Kingdom has introduced a 10% corporation tax rate for what is termed patent box activities. It has been publicly stated by officials in Northern Ireland that, as a result, projects that were due to come to the South went to Northern Ireland. Large multinationals in the UK have publicly stated that they have located projects in the UK as a result. The big four accounting firms in the UK have collectively said that they are now advising hundreds of companies which are considering relocating to the UK as a result of the UK undercutting our offering in many respects. What we offer is attractive but it is not a tax haven. Others are trying to do the same. In fact, others, including our nearest neighbour, are trying to undercut us.