Paschal collects €14bn Apple bonanza... but doesn’t want it
TECHNOLOGY giant Apple’s €14.3billion tax bill has now been raked in, Finance Paschal Donohoe confirmed yesterday.
But there’s no cause for celebration – because the money has been put into a holding account pending the resolution of Ireland’s claim against the European Commission, as Mr Donohoe argues that Apple doesn’t actually owe a cent.
At issue is whether the firm benefited from illegal State aid when routing its EU profits through Ireland and availing of special tax provisions. EU Competition Commissioner Margrethe Verstager has decided that it did.
The effect of her ruling was that all the tax liability from Apple’s EU sales became payable to the Irish coffers exclusively. Both Ireland and Apple are fighting the ruling. Mr Donohoe has confirmed that the cash – €13.1billion in alleged State aid plus EU interest of €1.2billion – was deposited in the past six months.
It was a ‘significant milestone,’ he said, ‘notwithstanding the fact that the Government does not accept the Commission’s analysis in the Apple decision and has lodged an appeal with the European Courts’.
‘While the Government fundamentally disagrees with the Commission’s analysis and is seeking an annulment of its decision in the European Courts, we have always confirmed that we would recover the alleged State aid, which will be held in escrow pending the outcome of the appeal,’ he added. ‘This is the largest State aid recovery and one of the largest funds of its kind ever to be established. It has taken time to establish the infrastructure and legal framework around the escrow, but this was essential to protect the interests of all parties to the agreement.’
Sinn Féin finance spokesman Pearse Doherty last night called on the Government to withdraw its appeal.
‘This is long overdue and required an explicit warning from the Commission (to the Government) to get on with it,’ he said. ‘As things stand the monies are the result of illegal State aid and represent taxes due to the Irish people from Apple. The company is free to appeal and is doing so but the time has come for Ireland to remove its appeal.’