Pedestrians on Anne South Street in Dublin, Ireland, on Thursday, March 28, 2024.
Bloomberg | Bloomberg | Getty Images
The Irish government on Tuesday outlined how it plans to spend 13 billion euros ($14.4 billion) on Apple tax refund – a blessing that Dublin has really thrown its weight behind several years Fight to avoid.
In his bumper pre-election budget speech, Irish Finance Minister Jack Chambers speak A recent ruling from Europe’s top court has given the country a one-time source of “transferable” income.
Chambers said Ireland’s future economic performance will depend on how the country’s infrastructure program is prioritized and delivered over the next decade, adding that it is not a “must” use cash “for everyday expenses or to narrow the tax base.”
“The government’s view is that we should use these revenues to address the known challenges we face in housing, energy, water and transport infrastructure,” Chambers said. .
His comments came three weeks after the European Court of Justice (ECJ) rule against Apple over tax issues in Ireland. The landmark decision, which the court said was final, said Apple must pay Ireland billions of euros in taxes.
The ECJ ruling was welcomed by tax justice advocates, as well as the bloc’s outgoing competition chief Margrethe Vestager, who described the announcement as a “huge victory” for citizens Europe.
At the time, Apple said it was disappointed with the decision, while the Irish government said its position has always been “no tax incentives for any company or taxpayer”.
‘Necessary infrastructure’
Ireland’s finance ministry on Tuesday forecast tax revenue will reach 105.7 billion euros this year, up 13.6 billion euros from previous estimates, mainly thanks to revenue from corporate tax and revenue from ECJ decision.
Ireland, which serves as Apple’s EU headquarters, does one of the lowest corporate tax rates in a bloc of 27 countries.
For years, the small EU member state has argued that the iPhone maker should not have to repay unpaid taxes to the country. They have opposed the lawsuit amid concerns it could threaten the country’s ability to attract investment from companies eager to limit their tax bill on overseas income.
However, the ECJ ruling on 10 September confirmed the European Commission’s position. 2016 decision that the country had given the US tech giant “illegal aid which Ireland must recover”.
Irish Finance Minister Jack Chambers (left) and Irish Minister for Public Expenditure, Delivery and National Development Plan Reform, Paschal Donohoe pose for a photo session before presenting the Irish Budget 2025 to Parliament at Government House in Dublin on 1 October 2024.
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Ireland, which must hold a general election by March next year at the latest, is now in the unusual position of having to run one. budget surplus several billion euros, thanks in part to strong corporate tax revenues.
The Dublin Chamber, a lobby group representing more than 1,000 businesses in the Irish capital, said it welcomed the commitment to invest the proceeds from the ECJ decision on “essential infrastructure elements ”.
“Funding for critical capital projects is paramount, without clear capital allocation, all Such a project is only ambitious.”
“We are pleased to see tangible, limited funding for water, wastewater and grid infrastructure agreed by all parties. [the] Government,” she added.
