The Department of Finance has rejected a proposal from the funds sector in the Financial Services Centre to create a new corporate funds structure in Ireland, warning it could damage the country’s tax reputation and be frowned upon by other EU countries.

The Government will not adopt a financial transaction tax if the UK stays out, writes Ann Cahill

Ireland will not take part in an EU “Robin Hood” tax on financial institutions, despite the fact that the country’s share of the levy will then go elsewhere.

France and Germany are struggling to find nine countries to move ahead with a financial transaction tax while Ireland is among those continuing to decline to join in.

The Government is turning down the opportunity to raise an extra €700m a year from trading financial services on the advice of the banking and hedge fund industry, according to information from the Department of Finance.