Written answers

Thursday, 19 May 2016

Photo of Pearse DohertyPearse Doherty (Donegal, Sinn Fein)
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53. To ask the Minister for Finance his Department's recent dealings with the European Commission relating to the ongoing investigation into tax arrangements of a company (details supplied) in Ireland and if he has an expected date for the verdict of the investigation. [10995/16]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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In June 2014, the Competition Directorate of the European Commission announced its intention to open formal state aid investigations into tax rulings provided to a number of companies in various Member States of the European Union. 

This announcement is part of a much wider review of tax ruling practice that is currently being undertaken by the European Commission covering all 28 Member States.  

Since October 2015, investigations in three other Member States have concluded.  In each of these cases the Commission found that the Member States granted an illegal State Aid to the companies in question.

I would like to emphasise that, while the Commission has opened a formal investigation in relation to one particular case involving Ireland, it has not made a final determination in the matter. There is no formal timeline for a when the final decision will be made in our case.

This a priority matter and Ireland has  co-operated fully with the process to date and will continue to do so.  Detailed and comprehensive responses have been provided to the Commission demonstrating that the appropriate amount of Irish tax was charged in accordance with the relevant legislation, that no selective advantage was given and that there was no State Aid.

I remain of the view that there was no breach of State Aid rules in this case and that the legislative provisions were correctly applied.  In the event that the Commission forms the view that there was state aid, Ireland is entitled to challenge this decision in the European Courts.  As the Government have already indicated, we will take that course of action, if necessary, to continue to vigorously defend the Irish position.

As I have said previously, there is simply no question that the Irish authorities sought to give the company in question any kind of special tax deal.

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