IMF warns state against reliance on multinationals

Erik de Vrijer, assistant director in the IMF’s European Department

The International Monetary Fund (IMF) has sounded a warning note on the state’s increasing reliance on revenues from corporation taxes and multinational companies.

The fund, a member of the troika which bailed Ireland out after the crash, cautioned against the use of corporation tax payments to slash income taxes. It said the money should be treated as a one-off gain to put to use on debt reduction.

“The exposure to multinationals is not ...