Terence Flanagan (Dublin North East, Independent)
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65. To ask the Minister for Finance his views that a company (details supplied) may have breached state-aid rules; and if he will make a statement on the matter. [37510/14]

Michael Noonan (Limerick City, Fine Gael)
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In June this year, the European Commission announced their intention to open formal state aid investigations into a number of companies in Member States of the European Union.  This included Ireland's case in respect of the company in question. 

As is usual procedure, at the same time as this announcement, the European Commission sent a letter to Ireland in which they outlined what they see as the basis for opening such an investigation and asking for Ireland's response and clarification.  A non-confidential version of this letter, known as an "Opening Decision", was published by the European Commission this week.  This is simply the next normal procedural step in the State aid investigation process and the purpose of this publication is to give other interested parties the opportunity to submit comments directly to the European Commission.

This whole process is part of a much wider investigation by the European Commission, which is looking at tax rulings and patent boxes in different Member States and which has been on-going for some time.

The Commission have a responsibility to ensure the smooth operation of the single market within the EU and to investigate potential breaches of the comprehensive rules on state aid i.e. the use of state resources in a way that would grant an unfair advantage to a particular undertaking or group of undertakings in a manner that distorts competition within the single market.

In respect of this case, it is important to emphasise that the Commission have only opened a formal investigation at this stage, they have not made a final determination on state aid in respect of Ireland. 

For state aid to exist in this case, less tax must have been charged to the company than should have been applied under the normal rules of taxation, and this must have distorted competition within the single market. 

Ireland is firmly of the view that there is no state aid in this case and we will continue to defend all aspects of this vigorously. 

Ireland has already issued a formal and confidential response to the Commission, addressing in detail the concerns and some misunderstandings contained in the Opening Decision.  Ireland welcomed that opportunity to clarify important issues about the applicable tax law in this case and to explain that the company concerned did not receive selective treatment and was taxed fully in accordance with the law.