US Treasury Secretary says Ireland is not a 'tax haven' ahead of Dublin trip

US Treasury Secretary says Ireland is not a 'tax haven' ahead of Dublin trip

US Treasury Secretary Janet Yellen is in Dublin today to discuss the global corporate tax rate endorsed by the G20 over the weekend.

Ms Yellen, the first female to take the top economic job in the US government, told the Business Post that she “would not wish to label Ireland a tax haven”.

In the interview ahead of her visit to Dublin, she laid out the stakes of Ireland joining the OECD agreement on corporate tax reform, saying it was “critical to being able to get an EU agreement”.

Secretary Yellen’s day will commence with a bilateral meeting with Minister for Finance Paschal Donohoe this morning.

Following this she will attend an event organised by the American Chamber of Commerce in Ireland.

The historic tax deal entails a global tax rate of at least 15% and has been agreed by 136 countries.

It was designed to create a fairer international tax environment, where profits are taxed in the places where they are earned.

Ireland’s competitive corporate tax of 12.5% has made it a lucrative destination for international business, including a large number of American companies, such as Amazon, Apple and Google.

In her interview with the Business Post, Ms Yellen said that Ireland no longer needs to attract large corporations with its competitive tax rate as most multinationals operating in Ireland do so because they can “take advantage of a very able, educated workforce and friendly business environment that goes well beyond taxes”.

Ms Yellen will deliver a speech at an event hosted by the Institute for International and European Affairs in Dublin Castle later on in the afternoon, and is expected to fly to Glasgow this evening attend the COP26 Climate Summit.