Irish Finance Minister Michael Noonan. ROLLINGNEWS
By Ray O’Hanlon
It began with a British vote to leave the European Union and it’s ending with a European Union decision to admonish Ireland over its tax dealings with Apple.
You would think that it was the Irish who had told Brussels to take a hike.
In the days and weeks following the British referendum, Irish politicians were at pains to remind Europe, the U.S. and the rest of the world that the Republic was as European as, well, pasta if not apple pie.
And now comes the Apple verdict from the European commission.
Granted, the Commission’s investigation was going on for several years and Brexit had nothing to do with it but Irish leaders would be forgiven for feeling not a little sore over what many see as a gross violation of Irish sovereignty on the part of Brussels
IREXIT anyone?
Typically, August is a month when government goes into snooze mode.
The Dail is in recess and ministers are wiggling the toes in the sand.
Some of them like to point out that it is Irish sand.
It would appear that finance minister Michael Noonan was avoiding long beach walks given the alacrity of the response from his department and the Irish Revenue Commissioners to the Brussels verdict.
The response was quick, pointed and terse.
Said a statement:
- The Irish Government disagrees profoundly with the Commission’s analysis.
- Ireland did not give favorable tax treatment to Apple. Ireland does not do deals with taxpayers.
- The Irish Minister for Finance will now seek Cabinet approval to appeal the Commission decision to the European Courts.
- No fine or penalty has been levied against the Irish State.
- The European Commission has explicitly stated that “this decision does not call into question Ireland's general tax system or its corporate tax rate”. No other companies are subject to this decision by the European Commission.
No fine or penalty indeed, but rather an awarding of roughly $14.5 billion, taxes that Apple would have to pay the Irish taxpayer for the years covering its presence in a small, green, western and very loyal outpost of the European Union.
And not to forget accrued interest.
But in this stranger than strange summer, the Irish government finds itself in position of having to appeal against a tax windfall.
And even the United States, which has been on Ireland’s back for years over its tax dealings with big American corporations like Apple, has expressed alarm over the European Commission sticking the boot in.
Back in Dublin, opposition politicians are clamoring for the government to take the money.
Some of the ministers in the propped-up minority administration led by Taoiseach Enda Kennedy, members of the so-called Independent alliance, are uneasy and uncertain.
An appeal, to be filed jointly with Apple - a double entente if you will - would appear to be the most likely next step but the internal politics of the issue are not going to go away.
So much for August, for the summer, for the supposed silly season.
To borrow from the movie “Jaws,” and with Michael Noonan in mind, the line is “summer’s over Mick and you’re the mayor of corporate shark city.”
And that he is.
