The Irish Government does not do “special deals for taxpayers,” according to the Minister for Public Expenditure.
Paschal Donohoe has pointed out that the €13 billion Apple is set to repay the Government is relatively small compared to the corporate tax revenue collected over the past decade.
Earlier this week, the EU's highest court upheld the European Commission’s decision that Apple must repay €13 billion in what was deemed "illegal" tax breaks.
While the government has consistently denied preferential treatment to the tech giant, it has accepted the court’s ruling.
On The Anton Savage Show today, Minister Donohoe defended the Government’s decision to contest the case against the EU.
“Firstly, it's absolutely essential from a corporate tax perspective and indeed a broader tax perspective that we emphasise that we do not use our tax policy to do special deals for any taxpayer,” he said.
“Secondly, if you look at the corporate tax policy itself and the receipts in relation to us, in the 10 years beginning in 2013, we have now collected during that period €126 billion.
“We have collected many times the size of the original €14 billion.”
Reputational damage
He accepted that reputational damage was caused to Ireland by the case.
“The issue has been going on for so long that I think the reputational effect was felt some time ago,” he said.
“The arguments that we can make that are really relevant to where we are now is that that is an issue that referred to tax opinions in 1991 and 2007.
“We have now fully implemented anti-tax avoidance directives in our law and we've changed many aspects of our corporate tax policy to deal with issues that were of concern many years ago.
“It's essential that we emphasise the stability and predictability of that corporate tax policy, given how important it is to us.”
Other countries claims
Minister Donohoe also addressed whether other EU countries may try to claim some of the tax windfall.
“In relation to the claims that other countries may have, I've long acknowledged this could be a matter and it has little to do with morality,” he said.
“It has more to do with the issue of claiming tax that is due in the jurisdiction in which consumption takes place.
“I’m not aware, as Minister Chambers said earlier in the week, of any claims being lodged in relation to this, and it's up to other countries to decide how they handle it."
Asked when a General Election might be held, Minister Donohoe said he believes it will take place in 2025 and that the Government “will go its full term.”
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Main image: Minister for Public Expenditure Paschal Donohoe speaking at Government Buildings in Dublin on August 17th 2023. Image: Sam Boal / © RollingNews.ie
