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Government to Appeal Apple State aid decision
Minister Noonan pictured at the media doorstep earlier
Finance Minister Michael Noonan today announced that the Government has decided to appeal the decision of the European Commission on the Apple State aid case.
I believe that there are some very important principles at stake in this case and that a robust legal challenge before the Courts is essential to defend Ireland’s interests. The full amount of tax was paid in this case and no State aid was provided. Ireland did not give favourable tax treatment to Apple. Ireland does not do deals with taxpayers.
Ireland has two months and 10 days to lodge the appeal. Pending the outcome of that appeal, Ireland is required to recover up to €13bn, together with interest, from the company. The sum may be placed in an escrow account until legal proceedings have concluded.
The Minister noted that the Government is also proposing a motion to the Dáil, supporting the appeal. The Government motion affirms its commitment to the:
- 12.5% corporation tax rate,
- Research and Development tax credit, and
- Knowledge Development Box.
It is good practice to undertake periodic reviews of key areas of Government policy. The last review of corporation tax policy took place in 2014. Since then a wide range of new international developments have emerged in international taxation, such as the OECD Base Erosion and Profit Shifting Project (BEPS). We need to ensure that Ireland’s corporation tax code meets these new standards while remaining competitive as the economy continues to grow.
Read the full statement here.