Long road to Apple decision suits Taoiseach Enda Kenny

Michael Noonan says the European Commission’s tax verdict is not expected this year

One can only guess at the different strands of negotiations going on between Ireland and Apple. There is the good news on the jobs front, with up to 1,000 additional jobs coming to Cork and the more awkward business of the EU Commission investigation into the tax arrangements the company has enjoyed here. It looks like this one is falling well for the Government on a number of fronts.

The most obvious one is the jobs. While Apple did not explicitly commit to a number of new jobs, it is constructing a new building in Hollyhill with room to fit 1,000 more people. And Apple boss Tim Cook said on his visit yesterday that Apple’s employment numbers here would grow to 6,000, implying that something approximating 1,000 new jobs are indeed on the way.

He also said that the tax verdict would have no implications for the company’s operation here. Nor would it be logical that they should, because what is at issue are historic tax arrangements. When the verdict does come, then the Government here must decide whether to appeal it to the European Courts – assuming it is a negative verdict.

The possibility now, however, is that this decision could be one for the next Government. Minister for Finance Michael Noonan said yesterday that a decision is not expected this year, apparently because the European Commission has now asked the Department of Finance for more information.

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This will take some time to compile. Then, if the election is called early in the new year, the issue for the commission is whether to publish such a politically sensitive matter during a general election campaign.

There is precedent for it staying as far out of such campaigns as possible, meaning the verdict could yet be delayed further.

Meanwhile there is a final plus for the Government. As reported here last week, it appears that Apple is one of the big corporations paying more tax here.

Noonan, as reported by Reuters, referred yesterday to the fact that it appeared that Apple was bringing a lot of intellectual property onshore here, though he did add that he did not know any details.

So more jobs, more tax and the possibility of an awkward decision from Brussels delayed until the new year.

No wonder the Taoiseach was smiling when he met Cook.