EC plays down investigation into Ireland's tax policy

The European Commission has played down the significance of asking Ireland for information on its tax system.

Authorities in Brussels said it is normal to ask individual countries to explain their own systems for taxing corporate profits.

It follows reports this morning that the commission is investigating Ireland's tax arrangements with large multinationals.

The commission said it is just trying to make sure that countries aren't giving companies a leg-up by negotiating lower tax rates.

Commission Spokeswoman Emer Traynor said authorities are making progress in addressing tax avoidance by major companies.

"What I think the request for information today shows is that we're ready to use all the tools at our disposable in our fight against tax avoidance- corporate tax avoidance in particular," she said.

"In the past year in particular we've made huge progress in this fight."