The Advocate General of the EU has proposed overturning a legal judgment which would allow Apple to get away with paying back €13 billion to the Irish people. His proposal is not yet binding but there is a good chance that an appeal court will accept it.
If that happens €13 billion would be immediately available for solving the urgent housing crisis. The government could use the money to build a huge number of social and affordable homes. They could also set up a not-for-profit state company to retrofit houses, saving energy costs for people.
But this right-wing government of Fianna Fáil, Fine Gael, and the Greens do not want to do this. Instead they have already spent €8 million of our money helping Apple escape handing over the money it owes us.
In 1991 and 2007, Ireland issued tax rulings in relation to two companies of the Apple Group (Apple Sales International – ASI and Apple Operations Europe – AOE), incorporated under Irish law but not tax resident in Ireland. It meant they got away with paying virtually no tax.
Between 2009 and 2011, for example, AOE had a net income of $30 billion but paid no tax to any government. ASI took in $74 million in sales income over four years but had no tax residency anywhere in the world.
An internal memo from Apple stated that ‘the government of Ireland has calculated Apple’s taxable income in such a way as to produce an effective rate of…. 2% or less’
This scandal was rumbled by an EU Commissioner but instead of holding up its hands and taking the money, the Irish government doubled down on its protection of Apple by paying out huge legal fees.
William Fry, for example received €3.1 million in fees for work on the case. €528,470 has been paid to solicitors, McCann FitzGerald, and €595,400 to accountancy firm PwC.
We should stop this waste of taxpayers money. Not a penny more for the legal firms. Withdraw the case and accept the €13 billion.
Then build the houses that we need.