BRUSSELS, May 22 (UPI) -- Irish Prime Minister Enda Kenny defended his country's tax code as European leaders gathered in Brussels to discuss corporations that dodge taxes.
"I'd like to repeat that Ireland's corporate tax rate is statute based, is very clear and very transparent, and we do not do special deals with any individual companies in regard to that tax rate," Kenny told reporters Wednesday.
The uproar over international tax dodging began in the United States with a congressional report that said technology giant Apple had exploited U.S. and Irish tax laws by creating multibillion-dollar subsidiaries that produced no product, hired no employees, and created the impression that they were exempt from paying both Irish and U.S. taxes.
Reports also said Ireland had offered Apple a tax rate that was even lower than the country's average corporate tax rate, which is low enough to have many label Ireland a tax haven.
Tax dodging is expected to be the major focus of the summit in Brussels, The New York Times reported Wednesday.
The Times reported European Commission officials have long been frustrated by efforts of countries, including Germany, France, Austria and Luxembourg, to keep their banking information secret.
Leaders from Austria and Luxembourg have complained clamping down on tax dodgers within the 27-member European Union would only push companies to other tax havens, such as Switzerland, Liechtenstein, Bermuda and elsewhere.
The European Commission, meanwhile, estimates international tax fraud cheats governments of about $1.3 trillion each year.
