Minister for Finance Brian Cowen said today he was "pleased" tax avoidance had been raised in a television programme last night but said it could have given a "more balanced treatment" of some issues.
Mr Cowen also insisted today his department's review of the tax incentives used by the wealthy to avoid paying tax here would influence future tax policy.
Minister for Finance Brian Cowen in the Dail
The Prime Time Investigatesprogramme highlighted a number of tax breaks available to high earners that can effectively wipe out their tax liability.
The programme also reported on how millionaire tax exiles can avoid paying Irish income tax by claiming domicile in another country while freely conducting business in the State.
Mr Cowen said the review of the tax breaks under way will ensure that the Departmnet of Finance will have "good evidence on the effectiveness of these schemes in meeting their economic objectives".
He noted that the last eight budgets and Finance Acts contained more than 30 specific anti-avoidance provisions.
Mr Cowen also pointed out that the schemes have been introduced and continued over the years by all finance ministers of every Government and many were introduced at a time of stagnant economic growth.
The original urban renewal scheme, for example, was introduced by the Fine Gael/Labour coalition in 1985; the holiday-resort incentive scheme was introduced by the-then minister Ruairí Quinn in 1995; and the Rural Renewal scheme was introduced in 1998 by the-then minister Charlie McCreevy, Mr Cowen said.
"The incentives have generated significant employment opportunities for skilled and semi skilled workers particularly in the construction and service industries, " Mr Cowen said in a statement.
The Minister adeded that he will always act to change the law "wherever necessary to ensure that tax provisions operate as intended."
Mr Cowen also maintained that the Irish treatment of non-residents was "broadly in line with international practice".
He noted that even if non-resident in Ireland, Irish people are liable to Irish income tax on Irish income such as income from directorships and rented properties.
However, millioniare tax exiles such as JP McManus, John Magnier and Michael Smurfit are not liable to Irish income tax on their income earned anywhere else in the world.
Mr Cowen also pointed out the loophole whereby it was possible for Irish residents to escape capital gains tax by moving abroad to a more tax-friendly country was closed under the Finance Act 2003.
The Minister also clarified the midnight or "Cinderella" rule that deems an individual to be present in the State for a day if the individual is present in the State at the end of the day.Mr Cowen said the amendment was agreed by the Dáil under the 1994 Finance Act and is still the rule today.
This provision was added to the Finance Act of 1994 after Fine Gael's Ivan Yates expressed concern that if a person came to the State at 11 pm and left the following day at 6 a.m. the person would be treated as being in the State for two days.
Non-residents cannot spend more than 183 days in Ireland for tax purposes. Prior to the 1994 Finance Act, the rule was based on the number of nights spent in the State, and the amendment merely confirmed this procedure, he said.