A time to be firm

The news that the European Commission is to investigate what are described as tax breaks for multi nationals operating in Ireland will provoke some concern.

It must also provoke the firmest response from our Government — anything that threatens jobs in Ireland or the prospect of foreign investment must be unceremoniously rejected.

International tax laws are a quagmire exploited by those with the resources and knowledge to do so. This is, like it or not, how international business is done.

Ireland has been accused of being a tax haven for multinational corporations, especially those in the high-tech sector. Any validity that accusation might have is usually seen as flawed when a like-with-like comparison made between actual rates of tax paid and the on-paper rate. Many of the countries who accuse us of seeking an unfair advantage by imposing a 12.5% corporation tax actually have a lower effective rate.

This is a serious game and jobs, businesses and families’ well being and security are at stake.

Our Government should respond to this initiative with the same indifference, the same ruthlessness that the EU showed when it forced the our Government to accept the private debts of European banks who invested very unwisely in Ireland. In short, tell them to get stuffed.