Leo Varadkar has dashed taxpayer hopes of reaping a €13billion tax bonanza from Apple.
The Taoiseach said those claiming we are owed a massive windfall in unpaid taxes from the ‘big tech’ multinational have “misrepresented” the issue.
In the Dáil, left TDs, including People Before Profit/Solidarity’s Paul Murphy and Mick Barry, called on the Government to collect the cash and spend it.
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However, Mr Varadkar, who was speaking in the Dail while the European Court of Justice was hearing an appeal of the case in Luxembourg, said the cash is not due to us because there was no mistake by past Irish governments in undertaxing Apple.
He added that the Exchequer should not be getting too excited about an Apple back taxes bonanza coming down the tracks because, even if the tax ruling holds up, other European countries might also want their chunk of the payback.
The Commission ruled that Apple had not paid enough taxes going back to the 1990s, but this was appealed by the Irish Government and Apple, with their appeal to EU judges being successful in 2020.
This saw the decision reversed and the Government welcomed it because it would have set a bad precedent for other companies with FDI (Foreign Direct Investment) here.
However, the EU Commission is now challenging this decision again with the latest legal battle coming before the courts yesterday.
There was no final decision reached, with an outcome now expected in around six months’ time.
In the meantime, the matter was raised in the Dáil on Tuesday.
PBP’s Mr Murphy said: “Right now, lawyers are being paid large amounts of money - paid for by the public - arguing in the European Court of Justice, incredibly, that the public should not receive €13.1 billion from one of the richest and largest corporations in the world.
“If the court finds against the Irish Government and the money is paid, that €13.1 billion could be used to build 70,000 homes.
“It could be used to provide extra hospitals or to increase the numbers of beds.
“It could be used to fund a just and rapid transition to a zero carbon economy.
“Instead, the State and the Government is using public money to say that this money should stay with Apple and it should stay on Apple's cash pile, which already sits at more than $200 billion.
“Does this not illustrate that the entire purpose of the economic policy of this Government is not to serve the interests of ordinary people but instead is to serve the interests of rich corporations?”
The Taoiseach responded: “I have had the pleasure of being to Hollyhill (Apple’s base in Cork) on more than one occasion.
“I visited Apple and I saw the work they do there and the thousands of jobs provided by people there.
“I believe the Apple state-aid case is being misrepresented, quite frankly.
“Let us not forget what this is about.
“This is the view taken by the European Commission that about 20 years ago Ireland had a special tax arrangement with Apple that was not available to other countries, that is simply untrue.
“The European court that heard the case found in favour of Ireland and agreed that there was no such special arrangement in place.
“We will see what the European Court of Justice says.”
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