Ireland’s government has announced its plans to allocate 13 billion euros ($14.4 billion) in Apple back taxes. This windfall, which Dublin had previously contested for several years, was disclosed in a pre-election budget speech by Irish Finance Minister Jack Chambers. He remarked that a recent judgement from Europe’s top court provided the country with a unique revenue opportunity “with the capacity to be transformational.”
Chambers emphasized the importance of prioritizing and delivering the country’s infrastructure program over the next decade to ensure Ireland’s future economic performance. He cautioned against using the funds for everyday expenditures or to narrow the tax base, suggesting instead that the funds be directed towards addressing critical challenges in housing, energy, water, and transport infrastructure.
This announcement follows a ruling three weeks prior by the European Court of Justice (ECJ) against Apple regarding its tax dealings in Ireland. The court declared that Apple must pay billions of euros in back taxes to Ireland, a decision characterized as final. This ruling was positively received by tax justice advocates and Margrethe Vestager, the outgoing European competition chief, who labeled it a “huge win” for European citizens.
Apple expressed disappointment with the ECJ’s decision, while the Irish government maintained it had not given preferential tax treatment to any companies or taxpayers.
Additionally, the Irish finance ministry forecasted tax revenue for this year to be 105.7 billion euros, an increase of 13.6 billion euros from previous estimates, primarily due to corporate tax receipts and revenue from the ECJ’s decision. Ireland, which hosts Apple’s EU base, is known for having one of the lowest corporate tax rates in the 27-nation bloc. Despite defending Apple’s position for years, the ECJ’s September 10 ruling confirmed the European Commission’s 2016 decision that Ireland had provided “unlawful aid which Ireland is required to recover.”
Ahead of a general election that must be held by March next year, Ireland finds itself with a budget surplus of several billion euros, driven partly by strong corporate tax receipts. The Dublin Chamber, representing over 1,000 businesses in the Irish capital, welcomed the government’s commitment to invest in “infrastructure essentials.”
Mary Rose Burke, CEO of Dublin Chamber, commented on the importance of earmarking funds for vital capital projects, stating that without clear allocation, such projects remain merely aspirational. She expressed satisfaction that tangible, ringfenced funding for water, wastewater, and electricity grid infrastructure had been agreed upon by the government.
