The Dáil chamber will be the venue Wednesday for what is expected to be a spirited debate on the government’s decision to appeal the EU Commission’s Apple tax ruling.
By Evan Short
TDs have been given a Department of Finance document to study, in advance of Wednesday’s Dáil debate, the government’s decision to appeal the European Commission ruling that Ireland granted Apple illegal state aid.
The government was to circulate the document after concerns were raised by opposition parties that all they had seen was a three page press release on the ruling.
The government cannot publish the full report by the commission.
Apple have been ordered to pay €13 billion in tax to Ireland; however, the Irish government and Apple have both said that they will appeal the findings.
The cabinet decided last week to launch the appeal, a process that is expected to be a lengthy one.
The European Commission ruled that Ireland granted undue tax benefits of that sum to the technology giants, following a three year investigation by Competition Commissioner Margarethe Vestager into Apple’s tax arrangements, dating back 25 years.
This week, Ireland’s European Commissioner, Phil Hogan, said the commission’s ruling was not politically motivated.
Mr. Hogan supports the commission’s decision.
And speaking to RTÉ, Apple Chief Executive Tim Cook said his company pays a global tax rate of 26.1%.
In his first interview since the commission ruling Cook said he was “very confident” the findings will be overturned on appeal.
Some opposition parties and TDs have been urging the government to take the tax windfall and spend it on domestic programs.
The Anti-Austerity Alliance said in a statement that read in part: “The Anti-Austerity Alliance has condemned the decision of the government to lodge an appeal against the decision of the EU Commission that Apple owes €13 billion in unpaid taxes.
“The decision which will see the government lodge an appeal, alongside Apple, against the ruling is this government’s bank guarantee moment.
“It is putting the interests of big business, in this case a major multinational rather than banks, before the interests of ordinary people.
“The government will waste public money taking a case to prevent a potential windfall of billions which could be used to dramatically change the lives of hundreds of thousands of people.”
And Sinn Féin has called for the government not to appeal the Apple ruling.
The party’s Public Expenditure spokesperson, David Cullinane TD, was speaking as Sinn Féin published its amendment to a government motion in the Dáil.
“It is important to note that, despite government attempts to spin this issue, the ruling from the EU Commission has no effect on Ireland’s corporation tax rate, or on Ireland’s sovereignty,” Cullinane said.
“What this ruling is about is ensuring a level playing field for everybody. It is about ensuring all companies pay their fair tax and it is quite clear that Apple were not paying its fair share.
“The Sinn Féin motion, which we are publishing today calls on the government not to appeal the ruling and for all payments due to the state to be recovered.”
The Dáil motion, agreed by the cabinet, would see an independent expert review the Republic’s corporation tax system.
The motion also states that the government should appeal the Apple ruling on the grounds of defending the integrity of the tax system, provide tax certainty to businesses, and to challenge the encroachment of EU state aid rules into the sovereign member states competence to set its taxation.
The draft motion also states that no company or individual should receive preferential tax treatment.
