Taoiseach Leo Varadkar has said that tax avoidance is best dealt with internationally by the Organisation for Economic Co-operation and Development.

Mr Varadkar said the OECD had found Ireland was just one of 22 out of 200 countries that is fully compliant when it comes to tax transparency. 

The Taoiseach also said that Ireland would absolutely support tax transparency internationally but would continue to resist moves from other countries that could compromise its right to set its own tax rates.

"We believe that taxes should be set in the Dáil - people elect us to set their taxes," he said.

Leaked documents detailing how Bank of Ireland and AIB helped wealthy individuals here avoid tax and disclosure by moving money offshore into tax havens are among those revealed in the Paradise Papers.

Bank of Ireland said it closed the last of its retail operations in the Channel Islands in 2014. 

A spokesperson said the bank is committed to maintaining open and co-operative relationships with the relevant tax authorities in the jurisdictions in which it operates.

In a statement, AIB said its offshore subsidiaries - AIB ISL and AIB CI - have had their banking licences terminated as part of an orderly wind down. 

AIB pointed out that these companies were part of the Appleby Group prior to a management buyout in December 2015.

"As part of any normal financial advisory services, we provide a range of financial advisory services. At all times AIB complied fully within the law in any jurisdiction we operate in," the bank said.

The AIB statement did not address the report in the Irish Times that these subsidiaries declined to provide information requested by the Revenue Commissioners on foot of a court order in 2015.