Dempsey says tax practice by semi-state bodies is legitimate

The Minister for Communications Noel Dempsey has said semi-state companies legally avoiding paying millions of euro in corporation tax by moving funds to Dutch holding companies is a matter for the Revenue Commissioners.

Speaking this afternoon, Dempsey said as far as he knows, this practice is a legitimate one.

Reports today claimed the ESB, An Post and Aer Rianta have been moving profits to so-called mailbox companies in the Netherlands for nearly 10 years.

Opposition parties have called for an investigation, and Minister Dempsey says he will look into the matter.

"My understanding is that this is cleared with the Department of Finance and Revenue, that it's common practice for companies that are doing business abroad and that it's perfectly legitimate," he said.

"Obviously, we'll be checking it out to make sure that it complies with our State laws and our tax laws."