Ruairi Quinn (Dublin South East, Labour)
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Question 84: To ask the Minister for Foreign Affairs his views on the reputational damage to Ireland by the use of Ireland as an effective tax haven for five of the world's top arms manufacturers; his further views on the reported comment in a publication (details supplied) that the location of such firms here is based on an assumption of not asking foreign countries about their affairs. [7171/10]

Micheál Martin (Cork South Central, Fianna Fail)
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It is important to note that Ireland is not regarded as a tax haven by either the OECD, the United States or any of the other major industrialised countries of the world. This is evidenced by the large and growing network of tax treaties that Ireland has in place with other countries around the world.

Ireland has now signed comprehensive Double Taxation treaties with 56 countries. Our Treaty network is rapidly expanding and now includes agreements with non-EU and non-OECD members. Ireland has also recently signed 14 Tax Information Exchange Agreements with other jurisdictions. These allow Revenue to request information (bank account or beneficial ownership information), which is relevant to an investigation here directly from the parties to these agreements.

Furthermore, Ireland does not encourage the establishment of brass plate operations which seek to simply avail of our low corporate tax rate. For this reason, while our corporation tax rate on trading activity is 121⁄2%, our corporation tax rate on passive income is 25%.

There is no special treatment for arms manufacturers in Ireland. All of the companies referred to by the Deputy are registered in Ireland with the Companies Registration Office and are part of multinational corporations which are engaged in a wide range of activities internationally including the production of commercial building products, telecommunications and civilian aircraft manufacturing and leasing.

As the Deputy will be aware from the publication to which he has referred in his question, the companies mentioned do not manufacture military material or equipment in Ireland, nor are they involved in the export of such items from Ireland.

Exports of military equipment and dual use items from Ireland are regulated by the Export Control Act of 2008. Accordingly, any company or individual wishing to export military equipment must apply to the Department of Enterprise, Trade and Employment for a licence to do so. In addition, Ireland fully subscribes to the EU Common Position defining common rules governing the control of exports of military technology and equipment adopted in December 2008. Ireland is also an active member of the main international export control regimes.

Ireland has been and continues to be at the forefront of developments in International Humanitarian Law and our reputation as a leading proponent for international disarmament is well established. I do not believe that our reputation in this regard is in any danger and I can assure the Deputy that it is my intention to continue to strongly support this aspect of my Department's work.