Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

I believe the House appreciates that the taxation affairs of individuals and of individual companies are a matter that is confidential between the individual or individual companies and the Revenue Commissioners. The rate of tax that is chargeable in Ireland on the profits that are made by a company in Ireland is 12.5%. It is only when the global profits of a company are added together, and it is only paying tax in Ireland, and one then divides the Irish piece into the whole lot, that one comes up with a lower figure. We are fully tax compliant.

Tax management, as the House knows, is an international business. Very clever accountants and very clever lawyers are involved in it, and they basically try to get into an unspecified space between the tax laws of two jurisdictions. Operating in that space, they find ways of avoiding the tax that otherwise would have been payable. That is why there needs to be an international initiative, in so far as it is possible, to close down those tax opportunities that are there for those who manage taxes. I understand this will be discussed at the G8.

In reply to Deputy Phelan's question, the Taoiseach, Tánaiste and I have all made public statements clarifying the position in recent days. Our diplomats internationally have been briefed and will seek out the best opportunities at the best time to make the Irish case through their contacts.

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