Pedestrians on Anne Street South in Dublin, Ireland, Thursday, March 28, 2024.
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The Irish government has outlined how it plans to spend 13 billion euros ($14.4 billion) in back taxes on Apple – a windfall that Dublin spent years trying to avoid.
Irish Finance Minister Jack Chambers delivers sumptuous budget speech ahead of election explain On Tuesday, Europe’s top court’s latest ruling provided the country with a one-time income “to enable it to transform”.
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 the “immediate priority” was not to use the cash injection “for day-to-day spending or to shrink the tax base” . “
“This administration believes we should use these revenues to address the known challenges we face in housing, energy, water and transportation infrastructure,” Chambers said.
His comments come three weeks after the European Court of Justice (ECJ) ruled against Apple over its tax issues in Ireland. The court called the landmark ruling final and said Apple must pay billions of euros in back taxes to Ireland.
The ECJ’s ruling was welcomed by tax justice advocates and the EU’s outgoing competition chief Margrethe Vestager, who called the announcement a “huge victory” for European citizens.
Apple said at the time it was disappointed with the decision, while the Irish government said its position had always been “not to grant preferential tax treatment to any company or taxpayer.”
“Infrastructure Essentials”
Ireland’s Treasury forecast on Tuesday that tax receipts this year would reach 105.7 billion euros, up 13.6 billion euros from its previous estimate, driven mainly by revenue from corporate tax receipts and European Court of Justice decisions.
Ireland is Apple’s base in the EU, One of the lowest corporate tax rates in the country in a group of 27 countries.
The small EU member state has argued for years that iPhone makers should not pay back unpaid taxes to the country. It contested the case over concerns it could threaten the country’s ability to attract investment from companies keen to limit overseas income tax bills.
However, the European Court of Justice’s ruling on September 10 confirmed the European Commission’s 2016 decision that the country provided “unlawful aid to the US technology giant that Ireland must withdraw”.
Irish Finance Minister Jack Chambers (left) and Ireland’s Minister for Public Expenditure, National Development Plan Implementation and Reform Pascal Donoghue pose for a photo before the presentation of the 2025 Irish Budget to Parliament at Government House in Dublin on October 1, 2024.
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Ireland, which must hold a general election by March next year, is in an unusual position: budget surplus billions of euros, partly due to strong corporate tax receipts.
Dublin Chamber of Commerce, a lobby group representing more than 1,000 businesses in the Irish capital, said it welcomed the European Court of Justice’s decision to commit proceeds to “infrastructure essentials”.
Mary Rose Burke, chief executive of Dublin Chamber of Commerce, said in a statement on Tuesday: “Funding important capital projects is vital and without clear funding allocations all such projects will remain a pipe dream.”
She added: “We are pleased to see the government has agreed to provide tangible, constrained funding for water, wastewater and grid infrastructure.”
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