Brian Lenihan Jnr (Dublin West, Fianna Fail)

I also welcome the debate because it affords me the opportunity to give some clarity on the matter. The Irish tax system is the same as those in other advanced countries and in line with general international practice in this respect. As Deputy Barrett pointed out, individuals travel between states and an arrangement must be arrived at between countries as to which jurisdiction such people are taxed in.

Individuals resident in the State for tax purposes are taxable on their worldwide income. Individuals not resident here for tax purposes pay tax on the income they earn here. In a strict sense, there is no such thing as a tax exile despite the popularity of the concept in debate. A former chairman of the Revenue Commissioners informed the Committee of Public Accounts in November 2004 that there was no such thing as a Revenue list of Irish citizens who are tax exiles.

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