By MYLES McENTEE, Political Correspondent, The Irish Sun

Enda denies tax deals for foreign companies

Enda Kenny angrily refuted that Ireland is a tax haven like the Cayman Islands or the Bahamas yesterday.

The Taoiseach was at an EU summit discussing tax evasion and fraud when he hit out at claims of sweetheart State deals for foreign companies.

The Government leader insisted: “We do not do special deals with any individual company.”

At a powerful US Senate hearing, headed by former presidential candidate John McCain, Ireland was branded a “tax haven” during a probe into tech giant Apple’s corporate tax payments.

The iPhone and iPod manufacturer, which employs nearly 3,000 at a service centre in Cork, was accused of dodging tens of billions of dollars in US taxes by sheltering profits in Irish “ghost companies”.

And it was alleged the company did a secret deal to pay just two per cent corporation tax, focusing attention on Ireland’s controversially low standard rate of 12.5 per cent.

But Mr Kenny was adamant there is no underhand agreement to slash the tax, which has been criticised by other EU countries, especially France and Britain.

He said he wanted to “reassure everybody that our proper tax rate is statute-based and does not allow for individual tax rate deals with companies”. Arriving for the crunch talks in Brussels, the Fine Gael boss added: “Our country has had a stable corporate tax rate for many years.”

And he insisted Ireland is one of the frontrunners in “building a new international consensus here about the transparency in respect of tax regimes as they apply to multinationals internationally”.

In the Dail, Tanaiste Eamon Gilmore also strongly defended our tax record.

The Labour leader said: “In December last year Ireland became one of the first countries in the world to sign an agreement with the US to improve international tax compliance.”

IDA chief: We’re not a refuge

IDA chief Barry O’Leary rubbished the idea that Ireland is a tax haven.

The investment agency boss insisted the country offered tax incentives just the same as Luxembourg, Belgium, Holland, Britain and some US states did.

So where are these refuges that keep the taxman at bay? Here are some of the best known.

— CAYMAN Islands: No personal income taxes, no capital gains, no corporate taxes, no payroll taxes.

— BRITISH Virgin Islands: No income taxes, no capital gains taxes, no inheritance taxes, no sales taxes, and just 14 per cent payroll taxes.

— BAHAMAS: No capital gains tax, no inheritance tax, no personal income taxes, no gift tax.

— SWITZERLAND: Full or partial tax exemptions.

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http://www.thesun.ie/irishsol/homepage/news/4938674/Kenny-EU-are-haven-a-laugh.html