Court case threatens investment

A LANDMARK European court case could greatly reduce Ireland’s ability to attract foreign direct investment.

The European Court of Justice will next week adjudicate on a dispute between Cadbury Schweppes and the British Inland Revenue on whether the company can avail of a lower tax rate on profits in Ireland.

According to the Inland Revenue, the confectionery giant set up two subsidiaries in Ireland purely to avail of the lower corporation rate.