Bernard Durkan (Kildare North, Fine Gael)
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87. To ask the Minister for Finance if the decision by the European Commission in respect of the requirement that income earned by foreign direct investors in other EU and non-EU states is liable for tax here, if applied broadly, will require an amendment to EU treaties; and if he will make a statement on the matter. [27997/16]

Bernard Durkan (Kildare North, Fine Gael)
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88. To ask the Minister for Finance the number and location of countries other than Ireland in respect of which profits made by a company (details supplied) which are likely to be deemed taxable here in the event of the EU courts ruling in favour of the European Commission; and if he will make a statement on the matter. [27998/16]

Bernard Durkan (Kildare North, Fine Gael)
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89. To ask the Minister for Finance the basis on which members of the competition and taxation committee of the European Parliament and members of the European Commission can claim to speak authoritatively regarding the outcome of any EU court decision on the European Commission's decision relating to the profits by a company (details supplied) earned in other jurisdictions being eligible for taxation here; and if he will make a statement on the matter. [27999/16]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 87 to 89, inclusive, together.

On 30 August 2016, the European Commission issued a negative decision in the Apple State Aid case. 

The Government profoundly disagrees with the Commission's analysis in the Apple case and will now challenge the decision before the European Courts.  Dáil Éireann has also passed a motion supporting the Government's decision to appeal the European Commission's decision.

Ireland has a period of two months and 10 days to bring an appeal.  The appeal process may take several years.  An appeal to the European Courts takes the form of an application to the General Court of the European Union, asking it to annul the decision of the Commission. 

Ireland's position remains that the full amount of tax was paid in this case and no State aid was provided.  Ireland did not give favourable tax treatment to Apple.  Ireland does not do deals with taxpayers.

Notwithstanding the negative decision, no fine or penalty has been imposed on the State.

The European Commission has stated that "This decision does not call into question Ireland's general tax system or its corporate tax rate".  No other companies are subject to this decision by the European Commission.

On foot of the Commission's decision, Ireland is required to recover up to €13bn of alleged state aid from the company covering a ten year period.  Notwithstanding the right of appeal, Ireland is legally obliged to recover the alleged state aid from Apple in the interim.  Given that this money may ultimately have to be returned to the company in the event of a successful appeal, the money can be held in escrow until the case has concluded.

The Commission has stated that:

- The amount of unpaid taxes to be recovered by the Irish authorities would be reduced if other countries were to require Apple to pay more taxes on the profits recorded by Apple Sales International and Apple Operations Europe for this period.

- The amount of unpaid taxes to be recovered by the Irish authorities would also be reduced if the US authorities were to require Apple to pay larger amounts of money to their US parent company for this period to finance research and development efforts.

This illustrates the contradiction at the heart of the European Commission's decision.  While requiring Ireland to recover the tax sums, the Commission is also acknowledging that the sums may in fact be taxable in other jurisdictions.