The Government has said it will carefully consider the judgment of the Court of Justice of the European Union, which ruled in favour of the European Commission in the Apple tax case and determined that Ireland was in breach of State Aid rules.
Following the ruling, the Government said it noted the statements in relation to the judgment from the court and said it will consider the judgment carefully when it is circulated.
In a statement, it said its position has always been that Ireland does not give preferential tax treatment to any companies or taxpayers.
“The CJEU has found that the tax paid was insufficient and that a greater amount of taxation was required to be recovered. Ireland will of course respect the findings of the Court regarding the tax due in this case,” the statement added.
“Today’s judgment provides the final determination in this case and the process of transferring the assets in the Escrow Fund to Ireland will now commence in the manner prescribed in the Deed governing the operations of the Escrow Fund,” it said.
It also said the Apple case involved an issue that is now of historical relevance only – the Revenue opinions date back to 1991 and 2007 and are no longer in force.
Ireland has already introduced changes to the law regarding corporate residence rules and the attribution of profits to branches of non-resident companies operating in the State, it added.
“Ireland is an active participant in international tax discussions and has also made necessary changes to its taxation regime as international tax rules have developed over time,” the Government added.
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Tánaiste Micheál Martin said the Government had noted today’s judgement by the Court of Justice of the European Union and will consider it carefully.
Mr Martin said the whole thrust of Government policy over many years has been to focus on job creation, adding that Ireland has been fortunate to see many employers provide significant numbers of high-quality jobs across our country.
He said that Apple is one clear example of this success story, with the company employing 6,000 people in its Cork campus.
“Ireland contested the European Commission’s argument and appeal because we felt it was important to defend the integrity and independence of our economic strategy. But it was also to protect jobs,” he said.
“Every international company that chooses to locate in Ireland looks for certainty and that is the foundation stone of our industrial policy. This was a highly contested case, shown by the fact that Ireland won its case in the EU’s General Court before the European Commission proved successful in its appeal today,” the Tánaiste said.
“The €14 billion in funding, which is the subject of this case, is a once off. It cannot be used for day-to-day spending, and the Government will now give careful consideration on how to use these funds in the best interests of the Irish people,” he added.
No impact on Budget 2025
Minister for Finance Jack Chambers said the €13 billion judgement will not impact on planning for Budget 2025.
He said it will continue to be framed by the Summer Economic Statement, adding that transferring the money is a complex issue and will take months.
Mr Chambers said that he will engage with the coalition leaders in the coming weeks.
Asked if Ireland had incurred reputational damage as a result of the judgement, Minister Chambers said that this was a legacy case and Ireland would be measured by how its tax code has evolved alongside the country’s full participation in anti-avoidance measures.
Asked if there could be other companies operating in a similar fashion to Apple, Minister. Chambers said : “No.”
The minister also said he could not comment on the likelihood of other countries making claims on the €13 billion.
Minister for Public Expenditure Paschal Donohoe said he remains convinced that Ireland did not make tax arrangements with individual companies, but he respected the European Court of Justice ruling.
Mr Donohoe added that the Government has made significant changes to Irish tax codes to bring it up to today’s standards.
Minister Donohoe said that if the Government had not appealed the European Commission ruling, it would be saying that the administration did not have confidence in how tax policies were being undertaken by the country.
Govt reckless in challenging Apple case – McDonald
Sinn Féin leader Mary Lou McDonald has accused the Government of gross recklessness and incompetence by challenging the Apple tax case.
“You couldn’t make this up. The parties of Government, those that lecture fiscal prudence to others, the same parties argued and sought to obstruct more than €13bn that the State was due coming into the public coffers.”
Ms McDonald said her party would spend the money on housing and infrastructure.
She said she was not concerned that the decision could have repercussions for Ireland’s foreign direct investment strategy, adding that the multinational sector chose Ireland for its education and talent base.
She added that if there was reputational damage for Ireland, it was inflicted by Fianna Fáil and Fine Gael.
Party spokesperson on Finance Pearse Doherty said Fine Gael and Fianna Fáil have “massive egg on their faces” as a result of the judgment.
He accused the Government of squandering public finances in defending the case, while taking the case also increased reputational damage to Ireland.
He said that Apple was in its right to defend and appeal the European Commission decision, but added – in his view – that it was right for the Irish State to defend a scenario where a company registered in Ireland made €104 billion in profit but paid no tax.
Speaking on RTÉ’s Today with Claire Byrne, Mr Doherty said he always believed the judgment was inevitable and that the money could have been put to good use in 2014.
“In 2014, this €13bn would have built tens of thousands of social and affordable houses right across the State. It could have transformed our society,” he added.
Apple decision ‘right and ethical’
Labour’s spokesperson on Finance, Public Expenditure and Reform Ged Nash described the judgment as a landmark one.
Mr Nash said the Minister for Finance must make a statement outlining the wider implications of the judgment for Ireland’s corporation tax system and for the country’s industrial policy.
“Labour has today formally requested a full Dáil debate on this pressing matter when the Dáil returns next Wednesday. This judgment vindicates Labour’s early call, for which we were roundly criticised by both Fine Gael and Sinn Féin, to sign up to both pillars of the OECD corporation tax reform process,” he said.
“This was the right and ethical thing to do, and it gives investors the certainty they need into the future. In fact the process to prevent profit shifting and the minimisation of tax bills with reference to intellectual property kicked-off with reforms brought in in Ireland in 2014,” Mr Nash said.
“This is a genuine windfall for the State. Much of the resources need to be directed to housing and infrastructure development,” he added.
Tax legislation overhauled since Apple case began
Tax Partner at Grant Thornton Ireland Peter Vale said the decision was a big blow to Ireland.
“It had been expected, at worst, that the case would have been sent back to the General Court for a second hearing. Many had even expected that the ECJ would have gone against the Advocate General opinion issued in November 2023, bringing closure to the case in favour of Apple and Ireland,” Mr Vale said.
“Few had expected today’s decision, which also brings closure to the case but which is potentially damaging from a reputational perspective,” he added.
He also pointed out that the case relates to a very different era and tax legislation everywhere has been significantly overhauled since then.
“There is also the point that it was nuances of the US tax system that facilitated many of the structures that have long since been closed down,” he said,
But he added that the decision will further fuel those that continue to accuse Ireland of having tax haven status.
“While both Apple and Ireland vigorously defended the European Commission assessments from the outset, there is no question that Ireland’s reputation suffered as a result of the ongoing case. Today’s verdict had the ability to restore that reputation; unfortunately the verdict went the other way,” he said.
Read more:
Apple must pay Ireland €13bn in unpaid taxes, court rules
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Apple ruling delivers ‘long-overdue justice’ – Oxfam
Chiara Putaturo, Oxfam’s EU tax expert, said the ruling delivered “long-overdue justice after over a decade of Ireland standing by and allowing Apple to dodge taxes”.
“While this ruling will force the tech giant to pay its debt, the root of the issue is far from solved. EU tax havens can still make sweetheart tax deals with big multinationals. The duty to stop this rests on the shoulders of EU policymakers,” she said.
“Yet, they have turned a blind eye to tax havens within their borders and the harmful race to the bottom that countries like Ireland are instigating,” Ms Putaturo added.
“This ruling must not stand alone as a single victory – it needs to compel the EU to close all loopholes that allow corporations to avoid paying their fair share of tax. It is time they end this draining of governments’ coffers and put that revenue into fighting the climate crisis and building hospitals, schools and other services for people.”
Additional reporting Paul Cunningham