World Business News

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No Sweetheart Deal, Ireland to tell Commission

Zone(s): Ireland ¦ Sector(s): Taxation
[16 June 2014,] By Jason Gorringe,, London: The Irish Government has responded to the launch of an in-depth investigation by the European Commission to examine whether advance tax rulings provided by certain member states, including Ireland, have resulted in the provision of unlawful state aid.

According to Joaquín Almunia, the Commission’s Vice President in charge of competition policy, the Commission is concerned that, in specific cases, national tax authorities may have provided rulings to multinationals to allow them to lower their taxable profits by excluding certain, otherwise taxable items from the taxable base. The Commission said it has reviewed the calculations used to set the taxable basis in the three investigations it is undertaking, and said, based on a preliminary analysis, it has concerns that these rulings could allow profits to be underestimated, which would thereby grant an advantage to the respective companies by allowing them to pay less tax.

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