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Margrethe Vestager is greeted by Finance Minister Michael Noonan in Dublin Castle in 2013. AP/Press Association Images

Government to appeal this week's EU decision to force Apple to pay up to €19 billion in back taxes

The EU is to rule this week that Apple got a special tax deal in Ireland over a period spanning from 1991 to 2007.

THE GOVERNMENT WILL appeal this week’s European Commission decision on Apple’s tax arrangements with Ireland, which could bring a tax windfall of up to €19 billion.

The Revenue Commissioners are expected to raise a tax assessment on the multinational giant following the decision, expected in the coming days, that Ireland broke EU state aid rules by offering Apple special tax arrangements.

The windfall for the exchequer could amount to anything from hundreds of millions of euro to €19 billion – but the Irish government is going to appeal the ruling, as they insist Ireland did not offer Apple a special sweetheart deal.

The EU is expected to hand Ireland a figure for the tax bill, though it’s understood the exact amount will be down to Revenue to calculate.

The European Commission is looking at whether Apple got a sweetheart tax deal in Ireland over a period spanning from 1991 to 2007. It has already made preliminary findings that Irish officials gave Apple a “selective” advantage in its tax dealings.

“Nothing is known until a decision is taken,” Fine Gael MEP Brian Hayes told TheJournal.ie this morning.

If the decision goes against Ireland, the question is will it be a rap across the knuckles or is it a more substantial tax call [for Apple].

“One back of the envelope assessment showed 19 billion would be owed, but that is absolutely crackers.

Europe US Tax Probes An Apple store in New York. Mark Lennihan Mark Lennihan

“There’s an expected decision this week… I believe it’s due in the next few days, yes.

The government has said they’re going to appeal it to the ECJ. That could take three years. That’s where we are on this.

“None of these things help in terms of our international reputation, but I think Michael Noonan is right to appeal the decision. A lot of the Commission assessment is based on supposition.”

Hayes also pointed out that Luxembourg appealed the Starbucks and Fiat cases, and Spain appealed an EU decision involving Bank Santander.

Apple’s tax bill could be to pay 10 years of back-taxes to Revenue, who may hold the tax bill in an ‘escrow account’, a sort of halfway house, pending the appeals of the EU by the Government and Apple.

Last month, Margaret Vestager, the European Commissioner for Competition, told the Minister for Finance that she expected to formally deliver the finding in September or October, possibly after the Budget.

This week’s ruling thus poses a political headache for the minority Coalition, as members from the Independent Alliance may argue for any ‘Apple money’ to be spent on public services.

The EU Commission’s decision, due this week, comes almost two years after the initial preliminary finding that illegal state aid was given to Apple by the Irish government between 1991 and 2007.

JP Morgan had previously warned that Apple’s tax bill could amount to €19 billion.

“Many of these issues are legacy issues,” Hayes said.

“Noonan got rid of the double Irish, he changed the legacy rules, he implemented all of the OECD processes, and we’ve doubled the amount we’ve taken in on corporation tax as a result.

The loopholes are no longer there.

“I think the Commission would be quite happy if these cases were appealed to the ECJ, as they are not completely sure of their ground.”

Read: Europe accused of ‘undermining the global tax system’ as Apple faces billions in Irish back-taxes

Read: Boost for the Leitrim as over 150 jobs announced

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187 Comments
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    Mute Michael cunnane
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    Sep 9th 2013, 8:05 AM

    That’ll be the fishermen .As a regular salmon angler on the Moy the vast majority of fishermen I meet on the waters are German.They love out salmon waters especially the moy and the erriff back at the beautiful Leenane!

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    Mute Ronan Archibald
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    Sep 9th 2013, 8:12 AM

    Used Knock for the first time last month – €10 ‘development fee’ before you can depart via the airport. Do the math – nice tidy sum they rake in!!!

    89
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    Mute Rodger O Waters
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    Sep 9th 2013, 8:15 AM

    Yeah its time to bin that scam if numbers are so impressive.

    63
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    Mute Mikey
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    Sep 9th 2013, 9:29 AM

    At least you can see where they spent it. Knock airport was some hole not too long ago.

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    Mute Gerry McGuinness
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    Sep 9th 2013, 10:46 AM

    @ Rodger, it costs me a lot more than €10 in fuel and time to drive to Dublin Airport, a scam is something underhand, the fee is clear to anyone flying and well worth it for sheer convenience.

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    Mute Matt
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    Sep 9th 2013, 11:16 AM

    Taxes at Dublin airport are a lot more than any other airport in Ireland

    28
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    Mute David Grealy
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    Sep 9th 2013, 11:57 AM

    The other airports have similar fees, the only difference being that they hidden in the airline’s taxes and charges.

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    Mute stoned.walled
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    Sep 9th 2013, 12:38 PM

    But you get to see the other airport charges at booking stage when deciding whether to book or not.

    In Knocks case it’s not as clear for 1st time passengers, especially families who are trying to vacation on a budget and they only find out about the €50 charge when thru arrive at the airport!

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    Mute richardmccarthy
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    Sep 9th 2013, 10:53 AM

    I remember Father Horan’s miracle,an airport built right on top of a windswept bog,even though he had no money he went ahead and built it anyway,even now he must be directing the tourist traffic from heaven, a truly inspirational story.

    48
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    Mute Joe Marron
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    Sep 9th 2013, 1:44 PM

    richard:
    I rember some of the kafuffle around the Airport & Father Horan,
    when you think how bad the Irish economy was then , he had some liathroidi.

    He should be an example to us in the current recession, he did not ask the gov’t to help him he helped his own community despite the gov’t

    26
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    Mute wiklagirl
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    Sep 9th 2013, 6:05 PM

    In the words of Christy Moore …. Did NATO donate the Dome ?

    Longest runway in the country when it was built ….

    3
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    Mute Christian Gitsé Visser
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    Sep 9th 2013, 12:22 PM

    Knock airport is great, nice and quick in and out, especially with 3 kids, not much walking, got bags fairly sharpish. €10 doesn’t bother me at all, great service and with a smile. Also I find pricing flights cheaper in Knock by up to 50% to the sunnier destinations :)

    40
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    Mute Danny Southgate
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    Sep 9th 2013, 8:23 AM

    That’s the lads working on our gas line that we gave away thanks to Bertie and Ray

    37
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    Mute sean o reilly
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    Sep 9th 2013, 9:23 AM

    In the words of Miley – well holy god.

    27
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    Mute David Beattie
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    Sep 9th 2013, 1:57 PM

    Knock Airport is of huge benefit. Convenient, cheap parking, friendly staff etc.
    As for the €10 Development Fund
    WELL WORTH IT

    24
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    Mute John Stenson
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    Sep 9th 2013, 1:28 PM

    Great to see Knock going from strength to strength.. the €10 charge is put directly towards new development at the airport which we have seen over the past few years with more to come in the near future..

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    Mute Eugene McDonough
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    Sep 9th 2013, 11:19 AM

    I used Knock twice in last 2 years – hate the 10.00 charge and you have no choice but to pay it. Both times the landings were terrifying the airport is do exposed and windswept – even the people sitting beside me said its always like that – scary

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    Mute Joe Marron
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    Sep 9th 2013, 2:25 PM

    I can’t belive there has not been a negative comment yet about the Church’s involvment in the setting up of this airport. Surlely we can find some blame here.

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    Mute Stephen Murphy
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    Sep 9th 2013, 3:27 PM

    Germans taking over, through the back door and god by their side?

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    Mute Qwerty
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    Sep 9th 2013, 4:51 PM

    Knock knock, who’s there? The Germans.

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    Mute Little Jim
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    Sep 9th 2013, 12:26 PM

    SPYS!!
    Oh hang on, they already know what’s happening.
    INFORMERS???

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    Mute AggressiveSecularist
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    Sep 9th 2013, 12:21 PM

    I didn’t think the germans were known for superstitious beliefs.

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    Mute Anthony Moran
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    Sep 9th 2013, 10:00 AM

    They must be taking a shortcut to end as gaff

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