Varadkar Affirms European Adviser's Opinion on Apple Case Won't Affect Ireland's Corporate Tax Regime

Taoiseach Leo Varadkar has declared that the recent opinion from an advocate general at the European Court of Justice (ECJ) regarding the Apple tax case will not impact Ireland's corporate tax policies. The advocate general, Giovanni Pitruzzella, has recommended setting aside a 2020 ruling by a lower court, challenging the European Commission's failure to prove over €13 billion in alleged back taxes owed by the tech giant.

Varadkar, currently in Paris for the International Conference on Humanitarian Assistance to Gaza, highlighted that he had not yet read the recommendation but emphasized that the legal process is far from concluded. He acknowledged the potential for the matter to linger in the courts for an extended period, projecting a year or two before a final decision is reached. Varadkar reiterated the Irish government's stance of maintaining a low corporation tax rate without entering into special agreements with individual companies.

Addressing concerns about the prolonged legal process's impact, Varadkar stated that the case is historical, revolving around taxes from a decade or more ago. He emphasized that Ireland's tax system has evolved considerably since then, with the closure of many loopholes. Additionally, he highlighted Ireland's commitment to an international agreement, setting a minimum corporate tax rate of 15%, underscoring that the recent recommendation has no bearing on the present or future tax landscape. G! G! G! G! G! G! G!

Earlier, Tánaiste Micheál Martin, dismissing concerns about the advocate general's opinion during his visit to China, suggested that the ECJ could reject the advice. Martin underscored Ireland's longstanding predictability and stability in tax policy, unaffected by the recent opinion. He acknowledged the lengthy legal saga since 2016 at the European level and emphasized awaiting the court's final decision, expected within the next six months.

Speaking at the China Europe Business School in Shanghai, Martin stressed the importance of Ireland's tax policy stability and certainty in attracting foreign direct investment. He expressed confidence that the Apple case would not diminish Ireland's attractiveness to multinational companies.

Sinn Féin's finance spokesman, Pearse Doherty, addressed the issue in the Dáil, asserting that it is not in the State or the economy's interest to have an unwelcome spotlight on the tax system. Doherty deemed the advocate general's opinion a blow for both Apple and the government, further highlighting its potential to embarrass the State.

Minister for Agriculture Charlie McConalogue clarified during Dáil questions that the recent opinion is not a judgment but an advocate general's viewpoint. He emphasized the government's serious approach to the tax regime, stating they have engaged internationally on corporation tax matters. McConalogue assured that the government would appropriately engage with the judgment to maintain confidence in investment in Ireland and the tax situation.