Apple ruling: Government paper accuses Brussels of selective bias

Document circulated before ruling says European Commission is hurting Ireland’s reputation

A confidential briefing paper circulated within Government

before the adverse tax ruling on Apple accuses the European Commission of selective bias, damaging Ireland's reputation and undermining international tax law.

The briefing pack, circulated to Government TDs including the Independent Alliance, also argues strongly against the State retaining the windfall, which stands at €13 billion.

To a prospective question asking why should Ireland not just keep the money to build houses and schools, the briefing paper states: "It would be irresponsible and extremely short-sighted to consider the European Commission decision as a windfall for the State".

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“Keeping the money would mean accepting the Commission’s hugely damaging analysis which would mean, agreeing that Ireland provided illegal State aid; accepting the Commission’s encroachment into sovereign tax rights; and creating huge uncertainty for business in Ireland,” it says.

Appeal

The 20-page document has set out how Government members should respond to the commission decision on the Apple state aid case.

Under the heading of ‘general speaking points’, it sets out a five-point reaction, stating Ireland “profoundly disagrees with the analysis”; does not do deals with taxpayers; has no choice but to appeal; points out that no fine has been levied; and argues that the decision has no effect on the 12.5 per cent corporation tax rate and no other company is subject to the decision.

Government members have been briefed that Government will have a period of two months and 10 days to bring an appeal and the appeal process may take several years.

It has argued it is “simply untrue” Ireland provided favourable treatment to Apple.

“It is very damaging for our reputation to be called into question in this way. In its approach, the Commission is undermining the fundamental principle of international tax.”

It also accuses the EU of selectivity. “The Commission itself has shown a clear selective bias, in targeting small Member States and US companies.”

Harry McGee

Harry McGee

Harry McGee is a Political Correspondent with The Irish Times