Enda Kenny (Mayo, Fine Gael) | Oireachtas source

We can only tax companies on the profits they make here. Many companies use multi-jurisdictional tax approaches. The end result may be that through the use of those other tax environments, the rate of tax is reduced from our 12.5% corporate tax rate. It is recognised that this cannot be dealt with individually and the approach must be collective. That is why the European Council, which I attended, was very happy to adopt the principle of achieving a new international code of tax practice. Countries which have traditionally been less forthcoming about their tax systems are now agreed. The anti-fraud package encompasses a quick-reaction mechanism to combat sudden and massive VAT fraud. The expansion of the reverse-charge mechanism was a priority for our Presidency. Political agreement was achieved on the package being delivered at the June ECOFIN meeting and the savings directive was put through. Ireland was the fourth country to sign up with the United States on the FATCA agreement on the sharing of information on tax. We have been very forthcoming on that. We have also been forthcoming on our involvement as a focus group for the OECD, which is now setting out the standards and work to be done to implement a new international tax system. Ireland was responsible during the Presidency for achieving agreement on a mandate for amendments to the savings tax agreement with Switzerland, Lichtenstein, Andorra, San Marino and Monaco to ensure there is an equivalence of measures across the European Union.

I do not accept Deputy Boyd Barrett's assertion that Ireland is a tax haven. I do not accept his assertion that there is a conspiracy of silence here. I accept that the reputation of the country is of critical importance. That reputation has been restored. It is accepted in business circles that Ireland's corporate tax rate is transparent, applies across the spectrum and has been deemed to represent an effective rate of 11.9% by the World Bank. The Deputy has made his case before. I do not accept it, consistent though he is in his argument.

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