Micheál Martin (Cork South Central, Fianna Fail) | Oireachtas source

It is an innovative company, which has been a long-term and committed investor in Ireland from its earliest years and through periods of both consolidation and expansion.

Tax rulings are an absolutely common, reasonable and ethical part of the tax code of nearly every country. This is based on companies seeking clarity on what taxes will be owed under given circumstances. In the case of Ireland, such rulings are made by an entirely independent agency with no official or political involvement whatsoever. The Revenue Commissioners look at the law and apply a fair and consistent interpretation. The implication that our Revenue was acting selectively to favour one company over others is completely unacceptable. That a five-year trawl through Revenue’s files in an effort to find a legal target produced such a slim and tendentious case is striking.

The Commission is seeking to establish a new standard for applying competition law to taxation matters. In effect, it is claiming that any provision that allows for profits generated internationally to pass through a jurisdiction without being taxed is unfair to firms that are not international. By definition, the Commission’s ruling is a selective one targeting multinational companies that invest into Europe. Once again, the Commission is unfortunately seeking to legislate for a world which has long since ceased to exist. For a decade and a half it has sought to beat a European drum against international firms, devoting huge time and resources to railing against the outcome of technological developments. Ten years ago the Commission was focused on the idea that Microsoft had achieved a permanent monopoly on Internet browsers and office software. The absurdity of these claims was obvious even then. Competition authorities also obsessed over the idea that Intel had a monopoly over processing technology for personal computers. Today they have failed to learn the lessons of the technology era and are focused on Apple, Google, Facebook and other technology leaders. They are making Europe a cold house for many innovative companies. The process by which President Junker was chosen was borderline ridiculous, and unfortunately he is supporting a policy that is designed to win headlines rather than strengthen Europe.

Any judgement that defines tax measures that are available generally to companies as selective is a threat to both rates and national competency on the area of corporate taxation. It is a back-door attempt to achieve what has been rejected in a series of treaty negotiations. The risk to Ireland is simply too big to ignore. We must fight this judgement by every means possible, which includes a more urgent, co-ordinated and professional engagement with the issue by the Government. The shambles of last week must not be allowed to happen again.

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