Neale Richmond (Dublin Rathdown, Fine Gael) | Oireachtas source

I thank all the Deputies who have spoken today from such a vast array of positions on this vital topic. The Apple case has been a high-profile, long-running case. I am glad that we had the opportunity to discuss it at some length in the House and it was pertinent that we did so. We have heard today from Deputies addressing the history of the case, the reasons behind taking the case, the changed approach to corporate taxation since the timeframe the case relates to and, of course, what comes next now that the judgment has issued. I will touch on all of these points again.

The Minister, Deputy Chambers, laid out the context of this case. Last week's judgment from the Court of Justice of the European Union was the final stage in a complex process that has been under way since 2016. The Minister laid it out in quite some detail so I am loath to repeat it but I was taken aback when Deputy Tóibín cited the Minister's departure and then proceeded to depart himself two minutes after giving out about it, a mild irony that was not lost on me. In all seriousness, it is important that I reiterate that this case involved an issue that is now of historical relevance only. The Revenue opinions at the heart of the case date back to 1991 and 2007 and are no longer in force. Ireland has introduced changes to the law regarding corporate residence rules and the attribution of profits to branches of non-resident companies operating in the State. These decisions were made by the Government of the day, not by Opposition Members, despite their claims

As has been discussed at length and already laid out, to comply with the 2016 decision, the alleged state aid was placed by Apple in an escrow fund, with the proceeds to be released only when there had been a final determination in the European courts. The amount transferred by Apple was calculated by Revenue on the basis of the decision and consisted of €13.1 billion in recovered state aid and €1.2 billion in EU interest. This escrow fund has been carefully managed since its establishment and now holds assets valued in the region of €14.1 billion. The escrow fund was established on the basis of a very detailed confidential legal agreement between Apple and relevant state parties. This agreement addressed how the money would be transferred in, how the parties would work together while the fund was operating to manage the fund and how the money would transfer out of the fund when the legal proceedings were complete, covering the range of possible results. This agreement is the basis on which the escrow fund will transfer to the State. The process for transferring it to Ireland is not simple and it will take time. It is likely to be at least six months before the transfer is complete and the escrow fund is closed. However, I can confirm that the necessary engagements with all parties are under way to ensure the transfers take place as smoothly as possible.

The issue of whether other countries will make claims on the money in escrow has arisen in discussions on this judgment. The escrow arrangements took this possibility into account and a mechanism was agreed whereby, in the event of such claims, a payment out of the escrow fund could be made to Apple to account for the profits taxed in third countries and not, therefore, fall to Ireland. The making of these adjustments was not dependent on the outcome of the legal proceedings in the European courts and so could proceed ahead of any final determination. Such third country adjustments have taken place on two occasions since the establishment of the fund. Some €209 million was returned to Apple during 2019 and a further third country adjustment took place in May 2021 for €246 million.

Therefore, a total of €455 million has been paid out of the fund in third country adjustments since 2019. As has been stated by the Minister, Deputy Chambers, we are not currently aware of any further claims which could arise if third countries claim that taxes were due by these companies in those jurisdictions.

Another key focus and commentary on the Court of Justice of the European Union result has been to ask what will be done with the money when it is transferred to the Exchequer. We have heard a number of suggestions in the media and again today. Many politicians have had this money spent time and again over the past few years. Every time something needed to be paid for, it was suggested we could use the Apple money. As I have said, it will take several months for Ireland to receive this money and so the parameters for budget 2025 remain unchanged from those set out in the summer economic statement. Let me be clear, however, that this is a once- off payment and should not, will not and simply cannot be used to fund day-to-day spending. We need to be clear with the Irish people. We can only spend this money once and we must be responsible and targeted in how we spend it. We must use this money to benefit the Irish people and our country, economy and future. There is no doubt about that.

I must pay credit to each of the Deputies, not all of them, who stood up and said they would not give a shopping list of demands and desires before proceeding to give a shopping list of exactly how this money should be spent, largely in their own constituencies. I pay credit to those Deputies, such as Deputies MacSharry and Fitzmaurice, who rightly identified that infrastructure is key to this. We will use this money in a targeted way to improve our country for the long term, improve our infrastructure and build more homes while protecting the economy.

I will say a few words about international taxation more generally. The framework for international taxation has changed significantly in the past decade. Ireland is an active participant in international tax discussions and has also made necessary changes to its taxation regime as international tax rules have developed over time. We have seen the Minister, Deputy Donohoe, show great leadership on this issue through his role as president of the Eurogroup but also as an individual Government Minister. This has been of massive benefit to Ireland and the wider economy.

When talking about multinationals in Ireland that pay corporation tax, such as Apple, it cannot and should not get lost in the discussion that tens of thousands of people in this country wake up every single day and go to work at these firms. They rely on these firms to support their families and contribute to their local economy. Let us not forget that many of these firms are based outside Dublin. They are crucial to their local community and every single job in these multinationals leads to at least three other jobs in those communities. Let us not lose sight of that in this discussion or any wider discussions of the importance of this sector to our economy.

This has been a complex and long-running legal case. Last week's judgment marks the end of this process and relates to a legacy issue. The taxation framework, both internationally and domestically, has changed since the timeframe covered by the Commission's decision. Our focus must now be on the future. Work is under way to prepare for the transfer of the funds from escrow to Ireland. The Taoiseach and the other leaders of the Government have already begun the process of deciding how and when these moneys will be spent. Many Deputies have said this needs to wait until after a general election. Neither I nor the Ceann Comhairle knows the date of the general election. It will happen when it happens and the budget will happen on 1 October. This money will be received within the next six months and we will have lengthy and multiple debates in this Chamber, on the airwaves and everywhere in between on how these moneys should be spent.

I will conclude on a word of caution. As I said, this money can be spent once. It cannot be the solution to every hot topic that comes up in a constituency clinic, on social media, on the radio or under Questions on Policy or Legislation. Now is a time for prudence and common sense. I fundamentally believe that is what we will see going forward in the delivery of these funds to be used for the delivery and protection of our people.

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