Multinational tax regime under threat from EU

Ireland could be in for a windfall, if multinationals here are found to be paying less than their fair share of corporation tax, but the country could also face losing its attraction for such global giants.

Ireland takes almost €4.3 billion in corporation tax. The European Commission has been questioning the Government over the past year about how the tax system works, including the so-called “double Irish”, after findings that some companies pay almost no tax on billions of euro of income.

The final decision on whether to launch an official investigation into Ireland, the Netherlands and Luxembourg, and perhaps others, will be taken at a meeting of the Commissioners next Wednesday in Brussels. It is expected to be hotly contested by the Commissioners from the member states concerned, but will have the support of many more, including France and Germany, who have been losing tax because of the Irish regime.