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spyware

EU report finds Ireland's tax system attracts malicious spyware companies

Intallexa, an Israeli company, produces the spyware product Predator, a malicious software programme which can be used to hack mobile phones.

THE EU HAS published a report on the presence and activities of spyware companies among member states and Ireland has come under scrutiny for hosting the headquarters of some of the targeted firms. 

Intellexa and its parent company Thalestris Limited are both based in Ireland for tax reasons and are registered to a tax firm in Balbriggan, Co. Dublin. 

Intallexa, an Israeli company, produces the spyware product Predator, a malicious software programme which can be used to hack mobile phones. 

The product is similar to its more notorious counterpart, Pegasus, which was also developed by an Israeli company, NSO Group.  

Pegasus made international headlines when it was revealed to have compromised the communications of journalists, activists and politicians in multiple jurisdictions including Hungary, Poland, Spain and France. 

A spate of digital security breaches over the last few years is what prompted the EU to conduct this latest report.

The report was drafted by Dutch MEP Sophie In’t Veld of the Renew Europe Group and examines the presence of Intellexa in Ireland, identifying Ireland’s fiscal regulations as a major attraction for the company. 

In January 2023, following a letter from Barry Andrews MEP, the Oireachtas Justice Committee committed to examining the existence of companies such as Intellexa in Ireland.

Speaking about the findings of the report, Andrews said:

“This report is a true indictment of Ireland. By allowing these companies to reside on our territory, we are complicit in the efforts of malign actors to undermine democracy in our neighbouring countries. By failing to investigate our role, we legitimise such activities, in addition to exposing ourselves to serious security threats.

“The matter must be investigated by the Oireachtas Justice Committee as a matter of urgency and today I have been in touch with Chairperson of that Committee, James Lawless TD, who has assured me that he will seek a date to examine this matter as soon as possible”

“Our fiscal laws,” he added, “are an important component of our competitiveness. Nonetheless, we need further measures to ensure that bad actors are not the beneficiaries of our tax regime. Our competitiveness cannot come at the expense of civil liberties”.

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