Speaking at the launch of the report, Dr Don Thornhill, Council Chairman, noted that Ireland has performed "remarkably well" in comparison with other countries in terms of increasing employment levels and living standards, most notably by attracting foreign firms with its 12.5% rate of corporate tax.

According to the Council Ireland ranks first of the 16 countries benchmarked in the report in terms of corporate tax competitiveness, and first out of 15 on personal income tax. The report also highlighted Ireland's culture of entrepreneurship, flexible labour market and openness to trade and investment as reasons for its strong economic performance.

"Ireland’s success in attracting foreign direct investment and encouraging entrepreneurship over the past decade has been assisted by the tax policies of successive governments," the report noted.

However, it went on to caution that Ireland's lead may not last long with global corporate tax rates generally trending downwards in recent years.

"Ireland’s low corporation tax has been a significant factor, but Ireland’s competitive advantage in this regard is under pressure, as the global trend is towards lower corporation tax rates," the report stated.