Fianna Fáil Finance Spokesperson Michael McGrath TD has said that the European Commission decision on Apple has the potential to create very serious issues for the country and requires careful study.

Deputy McGrath commented, ““Fianna Fáil is currently reviewing the decision announced by the EU Commissioner in charge of competition, Margrethe Vestager with regard to the tax status and liabilities of Apple in Ireland. The Commission has reached the conclusion that Ireland was solely responsible for the collection of tax on up to 60% of Apple’s global profits for a decade. This seems to run contrary to the various international tax reforms which link the payment of tax to where the value was created.”

“Clearly, this is an announcement of major importance, not only for the Irish Exchequer, and Apple but also potentially for a broad range of international companies based in Ireland and employing tens of thousands of our citizens.

 

“We note the repeated reassurances from Revenue and the Department of Finance that Apple did not receive any sweetheart deal on corporation tax. We are also conscious that Apple is not a ‘brass plate operation’ and has made a very significant economic contribution to Ireland in the past 36 years.”

“There is no doubt that as a country we find ourselves in the middle of a wider strategic clash between the US and Europe.  Those public representatives clamouring to accept the decision and its implications before the full decision has even been published would be well advised to pause and consider the wider implications beyond the headline of a €13 billion tax windfall that will remain out of reach for the foreseeable future at least until various legal challenges are played out.

“At the heart of Ireland’s economic development over the past 50 years has been our ability to attract Foreign Direct Investment. Central to this has been our strong and unambiguous commitment to the Corporation Tax rate and the fair and consistent application of our system to companies of all sizes. This must remain the case.

“In the press release issued this morning, the Commission has opened the door to other countries including the US to seek a slice of the €13bn. It would be deeply unwise of Ireland to make any plans for funds that may not even materialise in reality. This matter is now going to play itself out in the European Courts.

“There are many outstanding questions, which remain unanswered. The European Courts may be the only place where clarity on these issues will be found.”

From Ireland’s point of view, it is vital we have a corporation tax regime that is built on certainty.”