Seanad debates

Tuesday, 30 September 2014

2:55 pm

Photo of Sean BarrettSean Barrett (Independent) | Oireachtas source

I also raise today the corporate tax issue in relation to Apple. The Commission wrote to the former Tánaiste and Minister for Foreign Affairs and Trade, Deputy Gilmore, on 12 June last and, apparently, we have not participated. What was put to the media today from the Commission is a complaint that a request was made to us on 12 June, with, as it states, normally a month to reply, and it is now 13 weeks since then. The Commission has put the document out, and we have to participate in this. What it states is based on the above, that the Commission is of the opinion that the contested rulings do not comply with the arms-length principle and, accordingly, the Commission is of the opinion that through these rulings the Irish authorities confer an advantage on Apple and the advantage is obtained every year, and is ongoing, when the annual tax liability is agreed upon by the tax authorities in view of that ruling. The Americans estimated last year that the tax avoided per day by Apple in 2012 was €25 million, or €9 billion a year. We have been condemned for our policies on this in the United States and, only today, in the United Kingdom. I do not know whether this was addressed to the Department of Foreign Affairs and Trade, whether we have enough economic expertise but we should not be getting into this kind of relationship with the European Commission. We should enter into this dialogue, defend - as we have stated here on so many occasions - the 12.5% corporate tax rate and get rid of the fiscal termites who keep on undermining that rate and bringing Ireland into public odium in the United States, in the European Union and in the United Kingdom.

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