Delegate: Ireland not a target of US tax haven crackdown

THE leader of a visiting American congressional delegation Richie Neal has said Ireland’s corporate tax rate is not the target of Washington’s crackdown on tax-dodging.

He said there were key differences between low-tax countries such as Ireland and recognised tax havens.

“Ireland is not Bermuda, not the Cayman Islands, it is not Luxembourg nor it is Switzerland,” he said.

He said while he would like to see American companies keeping profits at home he would not support any return to protectionism.

“Those who suggest that somehow America are going to shrink from globalisation are making a fundamental mistake. It is not going to happen,” he said.

In May the American government produced a report on corporate tax polices and listed Ireland as a haven, only for it to be removed shortly afterwards.

Speaking at Leinster House Congressman Neal said the transparency of this country’s tax regime was acceptable to Americans and he did not agree with calls to close its borders.

He outlined particular problems with international reassurance companies and welcomes the relocation of a number of companies previously based in Bermuda to here.

The problem, he said, was when companies were using postboxes in tax havens as corporate headquarters.

He praised the ability of Ireland to continue to promote itself in Washington despite its size relative to other countries.

Congressman Neal said the Government’s decision to accept two detainees from the Guantanamo detention centre, both Uzbek nationals, would only help its relationship.

On Monday the delegation met with Taoiseach Brian Cowen and separately with President Mary McAleese.

Yesterday it met a parliamentary team led by Ceann Comhairle John O’Donoghue.

The discussions were spread across taxation, the economic crisis, Northern Ireland and undocumented immigrants in America.

The Congressman said it was unlikely a bilateral deal on immigration could be struck this year. He said last month’s statements by President Barack Obama, that he hoped to progress the immigration issue soon, had surprised him but he welcomed it.

However, he said it would take precedence over a more localised bilateral deal.“It is a complex issue. I think a bilateral agreement would be difficult given that the president last week indicated that he is prepared to embrace a comprehensive strategy to deal with the issue of immigration,” he said.