The head of tax for the Organisation for Economic Co-operation and Development has told Ireland it must charge 12.5% tax and not 2% if it wants to retain its tax regime.

Pascal Saint-Amans told a conference in Dublin that Ireland's tax regime was "low and attractive".

His comments follow controversy regarding multinational Apple, which a US Senate committee claimed was only paying 2% on company profits.

Mr Saint-Amans acknowledged that the Irish Government had played a role in supporting the OECD's efforts to extinguish tax loopholes.

He said the OECD would publish a report next month which will call for greater transparency for companies and countries on corporation tax.

Minister for Finance Michael Noonan said Ireland was working closely with the OECD.

However, he stressed the problems could not be resolved the by actions of one country but needed international co-operation.