Tax changes get EC green light

The European Commission has approved the tax changes announced in December’s Budget that aim to make Ireland more attractive as a base for holding companies.

Finance minister Charlie McCreevy said he would move soon to bring the new proposals into law with effect from last February, when the Finance Act was published.

The changes allow an exemption from Capital Gains Tax (CGT) for Irish resident companies on the sale of shareholdings in Irish or foreign subsidiaries. The EC said the package did not constitute illegal state aid.