Dáil Éireann Debate, Friday - 16 September 2016
289. Deputy Joan Burton asked the Minister for Finance the estimated amounts of tax payments to Ireland regarding a company's tax case (details supplied) and the European Commission, including any estimated fees and penalties and interest; when they will fall due; if potential escrow arrangements have been identified; and if he will make a statement on the matter. [25529/16]
View answer309. Deputy Alan Farrell asked the Minister for Finance if he will identify the European Union treaty which requires a company registered in a jurisdiction within the European Union to make payment to a State following a finding of the European Commission; the legal and practical basis upon which the Revenue Commissioners would act to collect payment from a company following such a decision; and if he will make a statement on the matter. [25897/16]
View answerI propose to take Questions Nos. 289 and 309 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 and will now challenge the decision before the European Courts.
Notwithstanding this appeal, Ireland is required by law to recover the alleged State aid from the company. As the amounts are subject to legal proceedings, the sums may be placed a ring-fenced escrow account, pending the outcome of the European Court process.
The Commission has said that the recovery amount could total up to €13 billion plus interest. This sum represents an estimation of what, in the European Commission's view, is the amount of additional tax that would have been paid over the past ten years had Ireland applied the European Commission's methodology.
The exact amount is to be determined by the Irish authorities on the basis of a technical and detailed calculation which applies the Commission's methodology, as set out in the Final Decision document. These amounts are also subject to an interest rate, set by the European Commission, calculated in accordance with Chapter V of Regulation (EC) No. 794/2004. The Commission has asked Ireland to calculate the exact amount and recover it from the company within four months.
It is important to emphasise that Ireland is not subject to any fine or penalty arising from this Decision.
