Tax loophole may be phased out

Officials in the Department of Finance are considering phasing out a tax device used by multinational firms including Google, as the EU looks into the practice.

They are considering the elimination of a technique known as the “Double Irish,” which allow firms to avoid paying corporate tax on much of their income, or phasing the tax break out over four or five years, said a source..

Finance Minister Michael Noonan is under pressure from the European Commission to end incentives which sweeten the nation’s 12.5% corporate tax rate as he prepares his budget speech. The commission said yesterday it asked for information from Ireland on tax residency rules earlier this year.