Mr. Conor O'Brien:

I think the effect would be relatively minor. The UK took this action in 1988 and the effect in the UK was relatively minor. The ability to have a company incorporated in Ireland but not resident in Ireland is not a significant feature of global tax planning for multinationals. I do not think it would have a significantly adverse effect on inward investment. In terms of that policy choice, one is looking at two factors, one being whether we should take the view that because we have allowed there to be Irish-incorporated but non-resident companies, and this has ended up attracting so much bad publicity - unfair publicity, I would argue, but that is perhaps a matter of opinion - one might decide that it should be changed in order to avoid such publicity in future, and decide to go down the route taken by the UK. As against that, one might take a view that asks why our tax system should be changed based on unfair criticism, and I think that may be how it will be weighed up. However, in terms of its effect, there would not be a big flood of extra revenue to the Exchequer because any company affected would simply restructure. Nor would there be a big outflow of foreign direct investment, because companies could restructure, and therefore I do not think it would be that big a deal for them.