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LAST UPDATE | 10 Sep 2024
MINISTER FOR FINANCE Jack Chambers has refused to be drawn on how the government plans to spend the €13.8 billion in unpaid tax from the Apple.
Tonight, The Department of Finance confirmed that the value of funds currently held in the escrow account is €14.1 billion. A total of €455 million has been paid out to other countries.
Speaking to the media at the Department of Finance this afternoon, the minister said that transferring the unpaid tax from the Apple escrow fund to Ireland will take “a number of months” and will have no impact on the upcoming budget.
Despite repeated questioning, the finance minister and Public Expenditure Minister Paschal Donohoe refused to outline what areas the money might be spent on, other than stating that discussions with party leaders will be take place as to what the next steps are.
They said there will be careful consideration of how the revenue should be used, with Donohoe stating that it will take into account the Fiscal Advisory Council’s and the European Central Bank’s recommendations.
“We will reflect on, first of all, the amount that will be made available, and that isn’t clear at this point,” Chambers said, telling The Journal that ”a mature discussion” will take place so a “sensible decision” can be made.
“I’m not going to speculate on any specific measure that might be made and obviously, we’re all engaged with the wider public and their priorities, and we want to make sure that their priorities are reflected,” he said.
We’ll give careful consideration to this,” he added.
When put to him that the revenue might go towards debt writedown, Chambers disputed that it must go towards debt reduction.
Chambers confirmed that the Court of Justice of the European Union (CJEU) decision was the final ruling in the case and said Ireland “will, of course, respect the findings of the court regarding the tax due in this case”.
The CJEU the highest court in the EU, today ruled that Apple must pay €13 billion to Ireland in unpaid taxes.
Eight years since the EU Commission initially found that Ireland had given Apple illegal tax advantages, and after challenges in lower courts, today’s ruling is binding.
Successive Irish governments, alongside Apple, had argued that the tax was not owed but the EU Commission pressed on with the case.
The assets in the escrow fund stood at €13.774 last year. Speaking at a press conference this afternoon, Chambers and Public Expenditure Minister Paschal Donohoe said the amount is currently in the region of €14 billion.
Apple has stated that the company will take up to a $10 billion earnings hit following the ruling today. Apple “expects to record a one-time income tax charge… of up to approximately $10 billion,” in its fiscal fourth quarter.
Chambers said the Department of Finance will begin the processes of taking the funds from the escrow account.
Finance Minister Jack Chambers says he needs to be clear that the Apple ruling on €13bn tax owed will not have an impact on this years budget.
— Christina Finn (@christinafinn8) September 10, 2024
He says the process of moving the funds from the escrow account could take a number of months. pic.twitter.com/KysXktSOeG
“This is a complex process which is expected to take a number of months to conclude,” he said.
“The Government will need to carefully consider what is the best course of action to take with this revenue, and I’ll be engaging with the party leaders over the coming weeks on this matter.”
Chambers also confirmed that the process “will not impact the parameters already set out for Budget 2025″.
“The Summer Economic Statement published by Government in July has set out the available package for the budget, and Minister Donohoe and I will deliver Budget 2025 on 1 October in line with those parameters,” he added.
Public Exchequer Minister Paschal Donohoe also said that the level of spending for this year’s budget remains unchanged.
Donohoe said Ireland “did not and does not make special agreements through tax policy with individual companies”.
“We have and had an independent authority in the Revenue Commissioner that impartially implements the tax policy of the day and does so purely with a view to implementing the law,” he said.
“That was the case then, it is the case now, and in the years that have gone by, Ireland has now made a series of very significant changes to our tax code to bring the operation of our corporate tax policy into line with the standards of today.”
Chambers said Ireland’s corporate tax regime “is built on certainty and predictability for multinational companies that have made Ireland their home, that have been established here for many decades and are significant employers across our economy”.
He said the global tax environment has changed dramatically over the last decade, and Ireland “has been at the forefront of these developments”.
The finance minister also said he had not spoken to Apple today but knows they are a committed employer in Ireland, employing 6,000 employees.
Asked about claims that could be made by other jurisdictions, Chambers said it’s ”not possible to comment on the likelihood of such claims”, but he said some “third party adjustments” had already been made.
The finance minister confirmed that there has been a marginal reduction in the overall revenue in the context of third country adjustments, but he added that he is not aware of any further third country adjustments presently being made.
“But I can’t predict the likelihood of them occurring in the next number of months,” he said.
He said the current working assumption is that the majority of the revenue will be available to the Irish government.
“But again, that’s subject to potential other third country adjustments, so we can’t be absolute on that,” he added.
Chambers is not aware of any prospective other similar cases being prepared against Ireland.
He said the current cost to the Exchequer in terms of legal fees has been €10 million.
With reporting by Christina Finn
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Now Mr Pringle,
Can you get back to focussing on why you were elected and stop using your time to take spurious legal cases
You have an objection to someone testing a treaty before the courts? A case that the Irish Supreme Court agreed should be sent to Europe? Maybe we should just ban the right of Irish citizens to access the courts.
Well Kerry, I hope he pays the costs and not ourselves, I do love how the likes of Pringle is outraged at having to pay “bankers debts” then happily expects us to bankroll his court challenges like this.
the likes of Pringle is outraged at having to pay âbankers debtsâ
And hopefully not at our cost.
Laura I’m outraged to be paying the bankers costs as a tax payer. I’ve not objection in an Irish citizen questioning a treaty if they are concerned about it. His questions by the way were validated by the Irish courts referring it to Europe. Europe took the question so seriously 27 judges reviewed the oral submissions. Do you think the right of an Irish citizen to take a court case should be removed? Because that is what you are saying.
@Kerry it was referred there not because the supreme court thought his case had merit, but because it wasn’t legally competent to interpret EU in this scenario. They did not in any way endorse his argument in doing so.
There was nothing democratic in his actions: the treaty was approved by referendum here. This was just a pathetic attempt to circumvent that decision.
He better be footing the bill for this.
European Court supports European Institution …
Gosh! What a shocker.
end of story.
respect to thomas pringle for taking the time and effort to make sure it was at it should be.some of ye think that it’s ok to take every thing that comes from above unquestioned so If we left it up to ye we would be back in the dark ages where the church and landed gentry ruled the people and if some one hadnt challenged that system it would still be dominate. Wake up will ye to whats going on around ye and it is ok to challenge authority and if thomas pringle has the time and where with all to take on this particular issue on our behalf then fair play to him.
It was questioned. We called it a referendum.
And it was approved. If the treaty had violated EU, perhaps it would have occured to someone to just change it? They didn’t because it didn’t.
Ger there was no referendum on the ESM treaty. There was one on a different treaty called the Fiscal treaty. For more on each of the two treaties and how they relate – http://www.taleoftwotreaties.tumblr.com
Mr pringle can do what he likes but its us. that will be paying for this court case. and it won’t be cheap
Petr
Enjoying freeloading yourself?
Garry,
Too stupid to reply to the correct comment?
Paying a relativity small legal bill compared to the financial rape payments to Bankers is to be welcomed. There will always be people who say we shouldn’t question authority. They’re the type that would send their kids to war on behalf of Goldman and co.
Thanks Pringle. At least you tried. Respect.
Don’t try to treat us as fools. The bill will run to millions of Euro for a bit of publicity ad self aggrandizement .
Millions of euro’s Garry? If you read the article you might see it was a oral hearing nothing more. Less of the exaggeration please. Amazing the people who seem to have a problem with someone exercising their democratic right to contest something in the courts. Even more frightening is the amount of people who seem to disagree with the Irish courts opting to refer the case to Europe for final judgement.
Hear hear – Ireland is committed to give at least 11billion to this fund..which may not be used to help with Ireland’s debt! Thank you Pringle.
On the Goldman (and a festive) note – this video is quite relevant here I think, in a case about setting up an institution to save banks! http://www.youtube.com/watch?feature=player_embedded&v=HwH7DmSvH1c
So who pays for this legal argument?? Will pringle pay himself or will it be the Irish taxpayer again? I reckon the latter
Once he pops, he just can’t stop. He’d challenge a traffic light…
Since Pringle brought this challenge, of course he should pay…..The ESM was already challenged in Germany, so why did he think his challenge would get the ECF, to reverse there decision in his favour…If the Supreme court here wants to challenge the ECF on matters let them…….He should pay, end of story, did he think it would be for free…
To Pringle – HA!
I’m not sure why we the Irish government or taxpayers would have to pay this. They didn’t initiate the action, nor did they support it. It was a case taken by Pringle himself. The High Court and Supreme Court in Ireland didn’t rule in his favour either.
Jim
You’re perfectly correct. These guys believe that the State awaits their pleasure and are dangerous enough to massively misuse funds at the State’s expense to push their own agenda or self aggrandisement. The Courts should apportion full costs against him
Jim the courts in Ireland referred the case to Europe because they could not answer it. Imagine that 1 person got the attention of 27 judges. Maybe Pringle should replace Enda at least he would get a bit more attention from Europe.
Misread headline as “ESM is awful”!
what’s with ye olde englishe
have your say