‘Sweetheart’ days for corporations may be over

Dublin’s insistence on operating the 26 County state as a tax haven for US multinationals is under intense pressure after Europe’s highest court backed a decision that Apple Inc. had unfairly benefited from billions worth of illegal tax breaks from successive right-wing governments.

Rulings issued by the Irish Revenue Commissioners between 1991 and 2007 allowed Apple to pay a ‘sweetheart’ tax rates as low as 0.005pc.

In a judgement delivered this week by Europe’s Court of Justice, the 26 County state was ordered to recoup €13bn plus interest in the largest-ever tax order in the EU.

There is still no sign this government is ready to force international corporations to pay their fair share of tax, but after eight years fighting the case, and with an election expected in the coming months, Taoiseach Simin Harris, said he might now consider spending the money.

Republican Network for Unity described the judgement as “a dagger thrust into the chest of capitalism”.

“Multinational organisations have long used Ireland to avoid heavy taxes the likes of Apple and Google who chose to patent new technologies here in Ireland exploiting the so called ‘Double Irish’, a deliberate loophole in Irish tax code that allowed them to channel billions of euros of profits through Ireland and on to Irish-incorporated entities elsewhere, avoiding tax on a grand scale.”

Aontú leader, Meath West TD and Finance Committee member Peadar Tóibín has asked for an explanation for the “costly strategy” to fight the legal acceptance of the €13bn.

“Fianna Fáil, Fine Gael and the Greens fought the EU to prevent Irish citizens from legally receiving €13billion in tax,” he said.

“This is an astounding fact and begs the question, who is the Irish government working for.

“In whose interests is the Irish government operating. In this case its clear, the Irish government were not working in the interests of the Irish people.

“The opportunity cost of this forgone €13billion is astounding.

“It’s a equivalent of building 32,500 houses at today’s crazy prices. Its the equivalent of a half a dozen hospitals even at the grossly inflated government rate.

“This unpaid tax was a result of a sweetheart deal between Irish governments and Apple.

“It meant that at a time when Irish workers were being crucified by income tax, some foreign direct investors used Ireland as a tax haven.

“Apple was charged a tax rate as low as 0.005%. Incredibly the Irish government spent over €8 million to fight against the receipt of €13billion.

“In a government that is world class in terms of waste of tax payer’s money, this must be the pinnacle of squander and misuse.”

Urgent Appeal