I am aware of the ECJ ruling that the Deputy has referred to. The September 12 decision from the ECJ confirms the earlier Opinion issued by the Court that the UK Controlled Foreign Companies (CFC) rules restrict the freedom of establishment principle and are only justified to the extent that they are applied to counter "wholly artificial arrangements". Taxation is of course the responsibility of my colleague Mr. Brian Cowen TD, Minister for Finance, and I understand that officials in his Department are examining the longer-term implications of the judgement.
The business structures that multinational companies use to serve their markets from Ireland are legitimate and legal under European law. Therefore in order to avail of our 12.5% Corporate Tax rate the taxpaying company must be trading and have real economic substance in Ireland. The rate cannot be availed of by "brass plate" type operations, which are targeted by CFC legislation. From an IDA perspective the decision has two positives: it clearly finds that the establishment of a subsidiary, in part, for tax reasons does not constitute an abuse of freedom of establishment; and it will discourage wholly artificial arrangements while encouraging locating economic value in Ireland. IDA is only interested in attracting genuine economic activity to Ireland and therefore the ECJ decision is fully consistent with our existing policy.