Fianna Fáil TD Eugene Murphy says that the European Commission decision on Apple has the potential to create very serious issues for the country and requires careful study.
“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. There is also a real fear that such a situation may now cause other multi-national companies to reconsider their positions in Ireland and perhaps look at relocating to other locations which would bring devastating consequences for Ireland.
We have always presented ourselves as having a tax system with a clear legal underpinning which offered real certainty to companies and now this judgement casts doubt over the way we impose tax on major corporations which has a knock on effect of causing reputational damage to Ireland,” said Eugene Murphy.
“pause and consider the wider implications”
“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.
“From Ireland’s point of view, it is vital we have a corporation tax regime that is built on certainty,” concluded Deputy Murphy