The Minister for Finance, Mr McCreevy, has "no intention" of changing Ireland's tax residency rules and he accused the Labour Party of wanting to "construct some kind of cocoon around the island" and to let "nobody in or out while living in our own little world".
Mr McCreevy was responding to Labour's spokeswoman Ms Joan Burton who asked him if he agreed that tax and residency should be linked to citizenship.
"What greater form of loyalty and fidelity to the State can one demonstrate than to pay your fair share of tax rather than run to some overseas tax haven to avoid paying any," she asked.
Did citizenship and fidelity to the State not imply that an Irish citizen who spent a great deal of time in the State "as many of these very rich people do", and would the Minister agree that they "should be proud to make a contribution to paying their fair share of tax?" the Dublin West TD asked.
Mr McCreevy replied: "I have considerably different views on the creation of wealth from the deputy's party.
"I believe in incentivising people while the deputy's party wishes to create circumstances in which we construct some kind of cocoon around the island and let nobody in or out while living in our own little world. That is not my philosophy and I have no intention of changing it. . ."
During finance questions, Ms Burton spoke of the "complete frustration and anger of compliant taxpayers at those who are getting away with paying little or in some cases, no tax". Ireland was "exceptionally generous in allowing such people to return for 183 days a year. We also allow the Cinderella procedure where a day in which a non-resident's jet takes off before midnight does not count as a day in the country from a tax point of view," she said.
Mr McCreevy said however that the residency rules provided that a person "is regarded as resident in the State for tax purposes in the tax year if they spend 183 days in the State in that year or 280 days on aggregate in that and the preceding tax year".
The 183 days residency rule was mirrored in countries like Australia, Austria, Canada, Denmark, Finland Germany, Italy and Norway and "the only OECD country where tax status is not based on residency is the USA".
He added: "Our rules are appropriate and I have no intention of changing them."
