Jobs at Aughinish Alumina at risk if tax exemptions go

JOBS at the Aughinish Alumina factory in Askeaton in Co Limerick may be under threat after the European Commission decided to appeal a ruling on tax exemptions by the European Court of Justice (ECJ) in the company’s favour.

The ECJ’s Court of First Instance ruled in December 2007 that the Commission was wrong to try and end an exemption granted to Aughinish and similar companies in France and Italy from paying tax on oil used in the production of alumina.

The Commission claimed the tax exemption granted to Aughinish constitutes illegal state aid. However, Aughinish has warned that the company could face serious and irreparable damage if it is forced to repay over e8.1m in excise duties plus interest and legal costs.