The G8 has agreed 10 principles to fight international tax evasion and the use of aggressive tax avoidance measures, as part of its conclusions at the end of this year's summit.
Number two of these principles may be of concern to Ireland, where it was agreed that "countries should change rules that let companies shift their profits across borders to avoid taxes, and multinationals should report to tax authorities what tax they pay where".
The moves are intended to target not only illegal tax evasion but also tax avoidance by multinationals who pay very little corporate tax despite massive revenues - depriving citizens and states of important taxes.
British Prime Minister and President of the G8, David Cameron, set his agenda on achieving agreement in the arena of the 3 T's, 'tax, trade and transparency'.
Politicians in the UK and US have been critical of Ireland's tax policies as well as the wealthy multi-national corporations that 'aggressively' use available loopholes in order to avoid paying tax.
Ireland's tax policy subject of private meeting
The Irish government insisted earlier in the week that Ireland's tax policy was not likely to be discussed at today's meeting of G8 leaders, yet the Taoiseach admitted that it was brought up during a a private meeting of G8 leaders at which Mr. Kenny was not present.
The Taoiseach says he was made aware of this after the fact, and addressed the matter during a lunch meeting where he says he was "able to account for Ireland's tax positions to the leaders".
According to Enda Kenny, the Irish corporate tax rate was raised specifically in the context of talks on tax but, he says, some leaders present defended Ireland by saying that "just because a tax rate is pitched at a particular level" it doesn't mean it lacks transparency or stands for aggressive tax avoidance.
The Taoiseach says he insisted to the group over lunch that "Ireland's tax rate is transparent" and assured the G8 that the Irish government "is in favour of engaging with any revised international tax codes on the matter".
He said that "Ireland will participate in the work and consideration of what is the best thing to do to deal with tax evasion and fraud and transparency".
It is unclear to what extent the government will adhere to these principles if it hampers Ireland's prospects for foreign investment.
Defending Ireland's tax code, he said, "Ireland can only tax companies on the profits that they generate in Ireland; Ireland is willing to be upfront here and work with other countries in putting together a new international tax code".
David Cameron was very eager to get agreement on the tax and transparency issues today, following successful conclusions towards a political mandate for the EU-US Free Trade agreement on Monday.
Leaders of the most influential countries in the world also signed up to increased transparency measures designed to share information about ownership and control of companies, particularly those present in developing nations.
Deep divisions on Syria and Barack Obama's plans for humanitarian intervention by arming parts of the opposition forces dominated proceedings earlier in the summit.
On Monday, best efforts were made by US President Barack Obama and Russia's Vladimir to appear cordial and diplomatic while defending their opposing viewpoints, but according to sources, the Russians views were "almost like the Russians against everyone else" on this hugely contentious matter.
As a result, the implication for action on Syria was relegated to a political agreement encouraging both sides to the negotiating table at a peace conference in Geneva in the coming months.
