The Republic's low-tax regime should act as an example to governments in other jurisdictions, according to the head of taxation policy at the Organisation for Economic Co-operation and Development (OECD).

Mr Jeffrey Owens, who leads the centre for tax policy and administration at the Paris-based body, said policymakers in the Republic had selected the "high road" on tax competition.

The "high road" amounts to "fierce and fair competition" while the "low road" entails competition based on secrecy and lack of transparency, Mr Owens told the Finance Dublin conference.

Competing states should realise that a low-tax rate does not mean that a Government receives less revenue, Mr Owens said. "It's a win-win situation. There is less incentive for evasion," he added.

"Ireland is setting the example where other countries have to go," he said, noting that the Republic was relatively "aggressive" in tax matters.

He predicted that the OECD's efforts to stamp out harmful tax competition would "in the long run", reduce the cost of compliance for taxpayers.

The OECD has been investigating harmful tax practices around the world since 1998 and is due to deliver its latest update on the process over the summer.

Mr Owens said he hoped seven jurisdictions that had yet to co-operate with the inquiry, including Liechtenstein and Monaco, would make a commitment to move towards transparency over the next 12 months.

"In a global economy, business requires globally consistent tax rules. I see our job as trying to provide those tax rules."

Speaking after his address, Mr Owens described elements of the debate on tax harmonisation across the EU as "trivial".

He said harmonisation would not be in any state's interest when it was contingent upon a minimum tax rate.

While broadly positive on the Republic's taxation system, Mr Owens identified a wide disparity between corporation tax rates and personal tax rates as a potential problem for the future.