Republic a Hub for Shell Companies in EU Tax Fraud, Money Laundering Schemes

A top official from the European Public Prosecutor’s Office (EPPO) has warned that the Republic has become a hub for shell companies facilitating large cross-border tax fraud and money laundering. The State’s advantageous corporate tax regime makes it a prime location for criminal networks to establish bogus financial entities, washing dirty money and defrauding European tax authorities.

EPPO Deputy Chief Prosecutor Andrés Ritter stated that investigators' ability to fully map criminal operations remains incomplete because the Republic is one of three EU states not members of EPPO, which has been operational since 2021. He noted many shell companies in the Republic participate in VAT fraud schemes and money laundering, often involving «carousel» schemes where goods are sold through connected shell companies across several countries to obscure unpaid VAT and fraudulently claim refunds.

Ritter, a German lawyer, revealed that up to a fifth of investigations into these complex fraud schemes link to organised crime groups. He indicated that the Republic's non-membership in EPPO makes it attractive for criminals. Minister for Justice Jim O’Callaghan previously cited the State’s common law system as a complication for joining. The Government has tasked officials with preparatory work, and the State might request to join next year, which would involve EPPO establishing an office staffed by Irish prosecutors.

Between 2021 and late 2025, the Republic received over 50 EPPO requests for information and assistance, with about 15 in the last year alone. Ritter believes this number would be much higher if the State were an EPPO member due to easier information sharing. Joining EPPO would provide a complete picture of criminal operations, enabling Irish investigators to better target money trails and the individuals behind them.