FF Calls For Govt To Defend Ireland's Corporation Tax System

The government is being urged to give the highest priority to ensuring that Ireland's standing as a country with a transparent and OECD-compliant corporation tax regime is fully defended.

Fianna Fáil Spokesperson on Finance Michael McGrath was speaking as the European Commission prepares to publish the preliminary findings of its probe into the affairs of Apple. The Financial Times is reporting this morning that Apple will be accused of "prospering from illegal tax deals with the Irish government".

Deputy McGrath stated: "It is impossible to underestimate the importance of robustly defending Ireland’s reputation in this regard and asserting our right to maintain a competitive tax regime in accordance with EU law. We need to make it crystal clear that there are no special corporate tax rates in Ireland.

"Our tax rules are set out clearly in legislation and the rules are applied fairly to all companies regardless of size. Other EU countries not subject to as close scrutiny as we face do not have the same level of transparency. It will come as no surprise that there are many in the European Commission who would like to puncture a hole in Ireland's corporation tax offering.

"We are still only at the early stage of the probe in to Apple's tax arrangements. However it is likely to be a long drawn out investigation. In that context there is significant risk for us that the investigation in to a single company's tax affairs could have a wider reputational impact on Ireland.

"The government must be proactive in ensuring we make the case to both European and US authorities that our tax rules are compliant with OECD requirements. It is worth remembering that companies such as Apple will eventually pay 35% corporation tax when their worldwide profits are repatriated to the US.

"It is United States tax law which allows them to defer this tax liability on an indefinite basis. The US could change this if they so wished but have declined to do so. In essence the deferral of tax by companies is facilitated by US law and not Ireland's."


Related Irish News Stories
Click here for the latest headlines.

03 December 2019
Future Of Ireland To Be Decided In Ireland, Not Westminster - SF
The future of Ireland will be decided on the island of Ireland, not at Westminster, Sinn Féin President Mary Lou McDonald has said.
19 October 2015
Investigation 'Imminent' Into Apple's Tax Arrangements - SF
An investigation into Apple's tax arrangements in Ireland is "imminent", Sinn Féin's Matt Cathy said. Mr Carthy, a member of the European Parliament's Economic & Monetary Affairs Committee, said: "The key point at issue is whether Apple's agreements with the Revenue Commissioners broke European state-aid rules.
29 November 2019
Ireland Reaffirms Commitment To European Space Programmes
The Minister of State for Training, Skills, Innovation, Research and Development, John Halligan, has reaffirmed Ireland's commitment to European space programmes.
26 May 2009
No More Income Tax Hikes, Claims Lenihan
The Finance Minister Brian Lenihan has said there will be no further income tax increases this year. The vow comes only a month after the Government doubled the income levies in the emergency budget. Despite the assurances, Mr Lenihan has confirmed that a property tax and a carbon tax were being considered.
20 March 2012
British Tax Breaks Could Threaten Irish Film Industry
Tax changes expected to be announced by British chancellor of the exchequer George Osborne in the budget speech tomorrow could threaten Ireland's ability to attract high-end British television drama productions. Ireland has benefited from the reluctance of the British authorities to extend the tax breaks given to films to television dramas.