Martin Kenny (Sligo-Leitrim, Sinn Fein) | Oireachtas source

All day, I have heard that we must defend the 12.5% corporation tax rate. While that is true, the only one on the pitch attacking the 12.5% rate is Apple, the largest corporation in the world, which did not pay its taxes in Ireland. The reputation of the country is the other major talking point of the day. For Ireland to appeal the European Commission's finding on Apple would be even more damaging to its reputation because it would involve defending tax evasion.

At the root of this issue is the fact that Apple sales outside of North America and South America were all done through two companies incorporated in Ireland. The companies, both of which were located in Cork, established another company known as head office. Sales from all over the world were recorded in the two offices. In its two rulings, the Revenue Commissioners agreed to allow all revenues accruing to the two companies to be routed to the head office to avoid paying taxes on them. That is the nub of the issue.

Irish people have been done out of the tax revenue that would have been paid on profits of €104 billion if the corporation tax rate of 12.5% had been applied. The 12.5% rate must be defended, which means that all tax on the €104 billion sum must be paid. If it is to be collected, it must be paid to Ireland where the company in question was incorporated. VAT and other sales taxes were collected in the countries where the sales in question were made. However, Apple brought the profits from these sales to Ireland and established the company in question for this purpose. To suggest that this money somehow does not exist or belongs to other countries is absolute nonsense. The money exists - it is to be placed in a bank account - and should be available to Irish people. People are lying on hospital trolleys and waiting for operations, yet the Government intends to turn its back on a sum of €13 billion. It is not good enough to walk away. The Government's decision to appeal the Commission's ruling is a statement that it believes tax evasion is correct. That is a terrible thing to put on Irish people.

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