Irish Cabinet Agrees To Appeal Apple Ruling

The Irish government has agreed appeal the ruling by the European Commission that Apple owes €13 billion in taxes to the exchequer.

The decision came at the end of a dramatic week, during which the future of the current administration was in serious doubt. There had been considerable concern that members of the Independent Alliance would not be able to agree to the position advocated by the Fine Gael Minister for Finance, Michael Noonan, that Ireland would have to appeal the European Commission's ruling.

The ruling was based on the argument that Apple’s tax benefits from locating its business in Ireland constituted illegal State aid. The European Competition Commissioner Margarethe Vestager insisted that the ruling is based on "facts”. Apple boss Tim Cook had responded by insisting that the decision was “total political crap”, and was motivated in part by an anti-US bias.

In particular, there were fears overnight that Minister for Skills and Training John Halligan – the subject of a hugely controversial interview in Hot Press recently – might not be willing to go along with the decision. However, that has now changed with Halligan, Finian McGrath, Shane Ross and Katherine Zappone all agreeing that the decision is the right one.

The government is convinced that Ireland has to appeal the decision, which they believe has profound implications for Ireland’s appeal as a base for foreign investment.

Katherine Zappone, who is Minister for Children, remains critical of the tax arrangements under which Apple has done its business in Ireland. She described the original deal as “unethical,” but insisted that the Irish government had now agreed to transpose stringent EU directives on more transparent tax policies. She also said that an appeal was the best way to secure money for Ireland as it might avoid prolonged delays.

The terms of Ireland's appeal will now be drafted by the Attorney General. The Dáil will meet, in a special sitting, to debate the issue on Wednesday, September 7.
A motion will be tabled seeking Dáil support for the appeal alongside a commitment to transparency in taxation of the corporate sector.
"The Independent Alliance has been working with Fine Gael, our partners in Government, to deliver a decision that takes into account all of our concerns," deputy Government Chief Whip Kevin “Boxer” Moran stated. "I feel that the motion being put before the Dáil will succeed in addressing our key concerns."
While the case has been presented in relatively straightforward black and white terms, there is a growing realisation that it is far from that. While there is a general feeling that Apple’s ability to reduce their tax liabilities to a fraction of the operative corporate tax rate here is insupportable, the background to the case – and who might ultimately be entitled to a share of any prospective windfall – is more complicated than many initial reactions allowed.

One fascinating and hugely informative piece on the legal complexities of the case was written by the RTÉ Europe Editor, Tony Connelly. If you want to understand the issues, and the surrounding legalities, it is well worth a read.

www.rte.ie/news/2016/0902/813591-santander-apple