One week after the decision of the European Commission to order Ireland to recover the equivalent of €13 billion in undue tax advantages over a period of 10 years from the American company Apple, the national parliament has started a debate on the government's decision to appeal against this decision before the Court of Justice of the EU.
"It is very damaging for our reputation to be called into question", the Irish finance minister said at the start of the debate, on Wednesday 7 September.
"This reputational damage can have very real consequences. It affects how Ireland could be treated by other jurisdictions in tax treaties, controlled foreign company rules or listings" of tax havens, he went on to stress.
"Furthermore, it damages Ireland's credibility in the international tax debate and inhibits Ireland in pressing arguments that serve our national interest", he concluded.
In a note submitted to the members of the Irish parliament, the government explains that the tax authorities were at no point in breach of the tax laws applicable in the case of Apple. Nor was any preference shown it in the application of this legislation, it adds.
Finally, Apple has paid its dues in Ireland in full, the government concludes. The country, which is obliged to recover the aid irrespective of its appeal, seems to be moving towards an inclination to put the money into a blocked account pending the Commission's decision.
The note submitted to the MPs lays particular emphasis on the mismatches between Irish and American rules on company residence. The result of this is that companies are 'stateless' for tax purposes. This refers to the well-known 'Double Irish' method. However, as the issue arises from a mismatch of two countries' rules, it cannot be resolved by Ireland alone. The government goes on to stress that it took all necessary measures to close the tax loophole on its side.
Speaking in Dublin on Wednesday 7 September, the president of the European Council, Donald Tusk, announced that the Taoiseach, Enda Kenny, had explained to him the reasons why the Irish government intends to appeal against the decision. Neither Tusk nor the European Commission wished to comment further. The outcome of the debate and vote at the Irish Parliament had not yet been announced as EUROPE was going to press. (Original version in French by Élodie Lamer)