Arthur Spring (Kerry North-West Limerick, Labour)
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To ask the Minister for Finance if his attention has been drawn to the fact that the report on tax injustice by TASC, which found that several corporate entities based here pay no corporation tax here, through mechanisms such as the Dutch sandwich; his views on whether this may reinforce the risk of Ireland gaining a reputation as a tax haven. [52946/12]

Michael Noonan (Limerick City, Fine Gael)
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The relevant section - “Is the IFSC and Ireland a tax haven?” - of the TASC report referred to by the Deputy acknowledges that, by reference to the standards established by international organisations such as the OECD, Ireland is not a tax haven. The standards established by the OECD are the most widely accepted standards by which countries assess their tax systems and those of other countries. The OECD and the international community do not regard Ireland as a tax haven. The OECD identifies four key indicators of a tax haven: the first is having no taxes or only nominal taxes; the second is a lack of transparency; the third indicator is an unwillingness to exchange information with tax administrations of OECD member countries; and the fourth indicator is absence of a substantial activity requirement. None of these criteria apply to Ireland.

Ireland has a comprehensive taxation system covering income, capital and indirect taxes and has Double Taxation Relief Agreements with 68 other countries. The January 2011 GlobalForum Peer ReviewReport on Ireland’s legal and regulatory framework for transparency and exchange of information found that Ireland has an effective system for the exchange of information in tax matters and is fully compliant with OECD standards. The Irish 12.5% corporate tax rate is a general rate for trading income that requires the trade to have real substance and activity. This rate does not distinguish between small and large enterprises or between enterprises that service the local economy and those that have a multinational focus. Ireland is bound by the same rules on State Aid, Code of Conduct on Business Taxation, and rulings of the Court of Justice as all EU Member States. Ireland does not support harmful tax competition and participates fully in the EU Code of Conduct Group, which addresses harmful tax competition, and in the OECD Forum on Harmful Tax Practices.