Mr Hogan said he disagreed with comments from Apple chief executive Tim Cook, who said the ruling was “political crap”. In any case, the ruling seems to be prompting some changes to Apple’s tax systems.
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The Dáil will be recalled on Wednesday for a debate and vote on the issue, while the minority government has also promised a review of the tax paid by multinationals. The Commission has been investigating whether tax authorities in member countries were being too generous in their application of accepted tax principles. Ireland apparently plans to appeal the commission’s decision at the Court of Justice of the European Union, calling it wrong and not wishing to jeopardize other such deals it has or seeks with offshore companies. But if the tax is paid, it would be the largest ever in Europe.
“We need to ensure that Ireland’s corporation tax code meets these new standards while remaining competitive”, Noonan added, in reference to a push by governments worldwide to crack down on complex practices used by companies to reduce their overall tax payments. He also said the tax ruling was politically motivated.
Apple, anxious to defend its own interests, has already said it will lodge an appeal. “They want the facts of the case”. Cook has continued to speak out strongly against the decision since then.
But multinationals such as Apple have created thousands of jobs in Ireland, and many are anxious that the flow of foreign investment could be hurt if the government enforces the EU’s retroactive tax demand. This government stands fully behind our tax regime. However, France and Germany have voiced support for the Apple ruling. It is looking at deals between European countries and major global businesses including Starbucks, Fiat, Amazon and McDonald’s. The companies and the countries affected all deny special treatment was given. Past year the commission ruled thatboth Fiat and Starbucks were given unlawful sweetheart tax deals in the Netherlands. It was successful in nearly all of the cases.
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Commissioner Hogan said Brussels and Dublin understands each other’s positions. It has vigorously opposed the European Commission’s state-aid investigations and findings released by Vestager.
