The Department of Finance has said it is examining the European Court of Justice ruling on the British retail giant Marks & Spencer and its impact on the Irish tax system.
A spokeswoman said the Government was committed to retaining discretion over national tax policy and was opposed to any harmonisation of direct taxes such as corporate tax.
Earlier, the court ruled that a company could claim back tax on losses incurred by subsidiary companies in other EU member states, with some qualifications.
The judgement may cost EU governments billions of euro.
The court's judgement applies initially to Marks & Spencer, but could have implications for governments across the EU which may be forced to pay taxes back to companies which operate in different member states.
Ireland is one of a number of countries which took a keen interest in the case since it is worried that companies with loss making subsidiaries in other EU member states could line up to claim tax relief.
