Europe to investigate Ireland's tax system

The European Commission is to launch a formal investigation into Ireland's corporation tax regime.

The commission will investigate whether or not Ireland offered sweetheart deals on corporation tax to certain multinationals operating here.

Fianna Fáil spokesperson for finance, Michael Mc Grath, said the Government does not treat the issue with the seriousness it deserves. He also said the announcement could prove damaging to the Irish economic recovery and will cost jobs.

"It's quite a serious matter for Ireland, because it does pose a threat to our economic recovery, and ultimately it could cost jobs," he said.

"We have about 150,000 people employed by multinationals in Ireland, [and] many more people indirectly employed, and any question mark or any cloud hanging over our corporation tax regime poses a threat to the economy."

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