Moves to play down Obama tax attack

The Government has moved to play down comments by US president Barack Obama that American companies are using legal loopholes to save tax by setting up headquarters in Ireland.

Mr Obama mentioned Ireland as an example of a location where some companies are moving addresses to avoid US taxes, even though employee numbers here are far lower than in their own country. This ‘tax inversion’ mechanism is the subject of debate in the US, whose laws allow it, although industry figures here say only dozens of large corporations have used Ireland or other countries to do so.

Jobs Minister Richard Bruton said the Government does not promote investment based on ‘tax inversion’ mechanisms and does not encourage such investment.