The Irish Taxation Institute (ITI) is calling on the Government to expand the number of tax treaties with other jurisdictions.

In a pre-budget submission presented to Minister for Finance Brian Cowen, the institute is recommending that the Republic needs to take a new approach to tax treaties (which prevent double taxation between countries) as a means of boosting competitiveness and attracting investment.

ITI president Dermot O'Brien argued yesterday that from the point of view of investors, it is no longer just the tax rate that is important, but the overall tax package.

"While regional centres in Europe, Asia and the Americas will always remain important in themselves for all business sectors, there is now strong evidence of the management of many business products on a global scale," he said.

"We see this in the pharmaceutical, technology and financial services sectors which are so critically important to the Irish economy. If Ireland is to retain its strong position in each of these industries, we must think globally and have an overall tax package that allows us to do business with a much broader range of countries."

Mr O'Brien pointed out that as a base for a large number of multi-nationals, the Republic had to operate as a global hub for businesses, and not just a European centre.

For example, if a US company locates a major head office here, it needs to be able to do business with all of its subsidiaries and partners around the globe on a reasonably homogeneous basis," he said.

The ITI is calling for 10 to 15 new treaties with new jurisdictions to be ratified between now and budget 2012. It also says the policy of preference for dealing with countries with which the Republic has existing tax treaties should be dropped.

It says that certain benefits should be extended to companies whose parents are based in either the EU or another country with which the State has a tax treaty.

The institute met with Mr Cowen last week to discuss its proposals.