E.U. Warns Ireland Over Patent Tax

Law360, New York (March 23, 2007, 12:00 AM EDT) -- An Irish law that grants tax-exempt status to patent royalties only if research leading to the patent is conducted in Ireland discriminates against other European countries, according to the European Union’s tax authority.

The European Commission's Taxation and Customs Union issued a formal notice telling Dublin to change the tax law provision or face continued legal action, including a possible challenge to the law before the European Court of Justice in Luxembourg.

The E.C. said the Irish law is incompatible with the European Economic Area Agreement...
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