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Firms saved tax via Luxembourg

Global brands from Heinz to Pepsi involved Irish units in plans to limit their tax liability by routing money through the tiny duchy of Luxembourg.

Documents released by the International Consortium of Investigative Journalists (ICIJ) show paper trails that involve the Irish units in legal tax planning schemes that help corporations from around the world pay lower taxes than they might otherwise have faced.

The documents show that Irish food group Glanbia has routed over €1bn through Luxembourg firms in order to reduce its tax exposure here.

"Luxembourg has been used by Irish groups in tax planning structures for many years," said Peter Vale, tax partner at Grant Thornton.