Fianna Fáil Finance Spokesperson Michael McGrath has expressed concern that the seemingly snail’s pace of the preliminary European probe into Ireland’s Corporation Tax regime could harm Ireland’s inward investment offering.
Deputy McGrath was speaking following receipt of a response from Vice President of the European Commission Joaquin Almunia to a letter Deputy McGrath sent expressing concern that the ongoing uncertainty around the interaction of Ireland’s corporation tax regime with multinational companies may have a detrimental impact on our economic recovery.
Deputy McGrath stated, “News of the preliminary probe by the European Commission into the corporation tax regime of Ireland a number of other countries was confirmed last September. It is a matter of grave concern that, six months on, the European Commission is still at the stage of ‘gathering information’ and that no timescale has been provided for the conclusion of the probe.
“In his letter to me, Commissioner Almunia has confirmed that the Commission has to either rebut or confirm claims that certain multinational companies in Ireland have been given special treatment by means of how the corporation tax regime is applied to them. I welcome the Commissioner’s statement that the Commission is not alleging that Ireland is a tax haven. However, he did say the Commission is ‘….concerned about the possible discrimination between companies that could arise from an administrative practice….’.
“The outcome of the review being undertaken by the European Commission is vital to Ireland’s economic interests. I believe it is essential that this review be concluded as quickly as possible so as to address any suspicion concerning how the Irish corporation tax system deals with individual multinational companies. I am therefore calling on the government to use its diplomatic resources to bring about a speedy and definitive conclusion to this current probe.”