The European Court of Justice will in December 2005 adjudicate on a dispute between Cadbury Schweppes and the British Inland Revenue on whether the company can avail of a lower tax rate on profits in Ireland.

According to the Inland Revenue, the confectionery giant set up two subsidiaries in Ireland purely to avail of the lower corporation rate.
The case, which is scheduled to be heard next Tuesday, could have huge implications for Ireland. The low corporation tax rate has not only attracted a large number of multinational companies setting up in Ireland creating jobs, but also in the development of the International Financial Services Centre in Dublin.