‘Ireland has done nothing wrong’ says finance minister over Apple tax

[webfact]

‘Ireland has done nothing wrong’ says finance minister over Apple tax

 

 

DUBLIN: -- Ireland’s government insisted it has done nothing wrong as the Dublin parliament debated its fight with the European Commission over Apple’s tax bill.

 

Finance Minister Michael Noonan, from the Fine Gael party in the minority coalition government, defended the decision to appeal against Brussels ruling that Apple owes 13 billion euros in unpaid taxes.

 

He said that ruling is damaging the country’s reputation: “We have a proven tax record in international tax reform and a matchless commitment to meeting the best international standards. We should not see ourselves through the eyes of our detractors. Those who would paint a cartoonish and negative image of Ireland.”

 

Noonan pointed out if Ireland took the money and Apple’s appeal to EU courts was then successful it would have to be paid back.

 

“A cynical lie”

 

Left-wing members, led by Sinn Féin, spoke out against the appeal.

 

Sinn Fein finance spokesman Pearse Doherty accused Fine Gael of lying: “They’re trying to mix up that this is some new attempt to undermine sovereignty and it is a dishonest assertion by them. It is a cynical lie to suggest that there is any new threat to our corporation tax rate in last week’s move. It is a lie and those who are peddling it, know it only too well.”

 

An opinion poll published just before the debate showed 62 percent of those questioned supported the Irish government appealing against the decision – agreeing with it that the country’s low-tax status is vital to attracting multinationals.

 

The poll was carried out for Ireland’s national broadcaster RTE.

 

Fighting to restore investment reputation

 

Ireland has started a campaign to redress the impact of the EU ruling abroad.

 

Officials and multinational advisors say they are confident it will not interrupt record flows of investment into the country.

 

“The Commission’s decision has been reported around the world, it’s a global story and some people obviously won’t get past the headline. That’s problematic for Ireland,” said Martin Shanahan, chief executive of IDA Ireland, the state agency in charge of attracting foreign direct investment.

 

“When IDA tries to attract companies in, those companies work on the basis that the taxation system is what is laid down in law. The Commission decision calls into question whether that is the case and that’s unhelpful, not just for Ireland.”

 

Shanahan, who began the damage limitation with a series of media interviews in London within hours of the ruling, will use Brexit-related trade missions to London, New York and the US west coast to provide clarity for investors in the coming weeks.

 

Brexit vote boost

 

Ireland is hoping for a bonus from Britain’s June vote to leave the EU, which leaves it as the only English-speaking country offering a base in the eurozone and a future in the bloc. It had more than 35 concrete enquiries by the end of last month from financial groups looking at setting up a base or expanding in Ireland as a result of the Brexit referendum.

 

Shanahan, who oversees the strategy responsible for around 190,000 jobs – or almost one in every 10 Irish workers – said the huge increase in inquiries has continued and he did not see the Commission’s ruling damaging those prospects.

 

“We will robustly defend ourselves”

 

“When we talk about damage to the reputation, if we step back, yes, it looks very bad,” said Eoghan Murphy, the junior minister leading the effort to capture whatever business leaves Britain’s financial centre.

 

“But when we actually talk to the different sectors, they understand what’s happening, they understand the overreach by the Commission. That doesn’t mean we don’t have to go out and robustly defend ourselves, and we will.”

 

 

-- © Copyright Euronews 2016-09-08

[Baerboxer]

Now we get the chance to see how a small sovereign nation gets on when it takes on the EU Commission and European mandarins.

[Ulic]

All businesses in Ireland should be able to get the same treatment and pay the same

tax rate. No sweetheart deals for foreign multinationals looking to dodge taxes. 

Whatever rates the governments decide should be available to all companies.

[canopus1969]

2 hours ago, Ulic said:

All businesses in Ireland should be able to get the same treatment and pay the same

tax rate. No sweetheart deals for foreign multinationals looking to dodge taxes. 

Whatever rates the governments decide should be available to all companies.

Why - no reason at all a government cannot be selective in order to attract companies - Ireland should tell the EU to f*** off and mind its own business

[Krataiboy]

16 minutes ago, canopus1969 said:

Why - no reason at all a government cannot be selective in order to attract companies - Ireland should tell the EU to f*** off and mind its own business

 

 

Or it could just do an Irish Brexit (that's a Brexit danced with a victory jig).

[RuamRudy]

1 hour ago, canopus1969 said:

Why - no reason at all a government cannot be selective in order to attract companies - Ireland should tell the EU to f*** off and mind its own business

 

Because then you give unfair advantages to foreign companies who rake in billions and offshore the profits almost tax free, while indigenous companies are burdened with the taxes that the multinationals avoid. 

 

I presume that Apple made use of the infrastructure that the Irish taxpayer provided, enjoyed the security provided by the police, armed forces etc. Why should they get those services free of charge ?

[humqdpf]

4 hours ago, Baerboxer said:

Now we get the chance to see how a small sovereign nation gets on when it takes on the EU Commission and European mandarins.

But this is a win-win situation. Either the appeal sponsored by the Repubic of Ireland wins and the government will be happy or they lose and they win back a huge amount of money - the total amount is reckoned to be about 19 million Euros if you include interest.

 

Oh, what a terrible situation for a small sovereign nation to find itself in! (warning - the previous clause was intended to be ironic)

[CharlieK]

The EU has 20 billion reasons why they want Apple pay taxes in Europe! The shortfall once the UK has gone. They will fight over the scraps left by brexit, all wanting a piece of the action. 

 

out of the frying pan into the fire! The UK has left a sinking ship. There are those that don't see the folly of rushing onto that sinking ship. 

[elgordo38]

5 hours ago, Baerboxer said:

Now we get the chance to see how a small sovereign nation gets on when it takes on the EU Commission and European mandarins.

Did you read the tax rate Apple received what a joke. 1% to .005% effective tax rate. Ireland is playing games here. All us slobs that pay regular tax rates are being hosed supremely. Ireland is catering to Apple. Apple has no moral turpitude (from Porky's) They are finally being shown for the bandits thieves that they are playing off one country against another. The US government steps in screaming foul because they want the cream off of the top when naughty Apple repatriates all their ill gotten gain back to American shores. Kudo's to the EU for calling Apple out on this. 

[khunken]

1 hour ago, elgordo38 said:

Did you read the tax rate Apple received what a joke. 1% to .005% effective tax rate. Ireland is playing games here. All us slobs that pay regular tax rates are being hosed supremely. Ireland is catering to Apple. Apple has no moral turpitude (from Porky's) They are finally being shown for the bandits thieves that they are playing off one country against another. The US government steps in screaming foul because they want the cream off of the top when naughty Apple repatriates all their ill gotten gain back to American shores. Kudo's to the EU for calling Apple out on this. 

 

Apple, just like it's big multinational counterparts, manipulates it's revenues & profits to be declared in the lowest tax haven, even though most of those are earned elsewhere.

 

In reality the tax should be paid to the US tax authorities but big business always has the lobby groups to keep their loopholes.

 

The EU is absolutely correct with this move and I strongly suspect that the Irish politicians who support the appeal will not be very popular with their constituents if they win as EU13b odd would wipe out the remnants of austerity in the country.

 

Post-Brexit I don't think Ireland will need an artificially low business tax to attract (& keep) companies that want a base in an English-speaking country within the EU.

 

BTW I'm Irish.

[thaihome]

20 minutes ago, khunken said:

 

Apple, just like it's big multinational counterparts, manipulates it's revenues & profits to be declared in the lowest tax haven, even though most of those are earned elsewhere.

 

In reality the tax should be paid to the US tax authorities but big business always has the lobby groups to keep their loopholes.

 

The EU is absolutely correct with this move and I strongly suspect that the Irish politicians who support the appeal will not be very popular with their constituents if they win as EU13b odd would wipe out the remnants of austerity in the country.

 

Post-Brexit I don't think Ireland will need an artificially low business tax to attract (& keep) companies that want a base in an English-speaking country within the EU.

 

BTW I'm Irish.

 

Good post and I agree. Apple has some 230 billion USD in cash reserves, 98% is outside the US in order to avoid having to pay US corporate tax on it. Multinationals should have to pay a fair tax rate on profits where they are earned and not be allowed to move them around to avoid them or pay a ridiculous low rate. 

 

It's is common, at least in the US, for states and local jurisdictions to give various tax exemptions or abatements, to encourage companies to build factories in their area, but due to US federal tax laws, they cannot exempt tax on profits much less anywhere near the scale that the double Irish scheme allowed on avoiding tax on  worldwide profits.  

 

In my opinion,  the EU is correct in this move. Obama as part of the FY 2017 budget  has proposed tax measures to close the tax loophole on unrealized profit for US multinationals,  but the republican congress refuses to even hold hearings, much less even vote on such "radical" tax policy. 

 

• Impose a one-time 14% tax on previously untaxed foreign income.  The Administration recommends imposing a one-time 14% tax on the accumulated earnings of CFCs that were not previously subject to US tax.  The accumulated earnings subject to the one-time tax could then be repatriated without incurring further US tax.  The proposal would be effective as of the date of enactment and would apply to earnings accumulated for taxable years beginning no later than December 31, 2016.  (The 19% minimum tax described above would apply to all subsequent taxable years.)  The tax would be payable ratably over five years.
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• http://www.steptoe.com/publications-11056.html
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If this was done, the EU would have no case against Apple.

TH