Apple’s unpaid taxes not a pot of gold, says Donohoe

There is “no pot of gold at the end of the rainbow” if Ireland sides with the European Commission and demands that Apple hands over €13.6bn in unpaid taxes, because other EU nations will be entitled to “go after” the fund.

Finance Minister Paschal Donohoe warned that any settlement would “undermine our business model” and put thousands of Irish jobs at risk, as Taoiseach Leo Varadkar travels to the US to hold crunch talks with Apple chief executive, Tim Cook, and other high-ranking business officials, during a three-day trip to California.

Speaking to Newstalk radio’s On The Record, with Chris Donoghue, Mr Donohoe said that, despite growing pressure from Europe and from Irish citizens that the money be handed over, there is no reason to do so.

Asked directly why it is not in Ireland’s interests for the Government to push Apple to repay the €13.6bn in unpaid taxes, Mr Donohoe said this country would only receive a fraction of the sum, in return for putting jobs at risk.

“I don’t think there’s a pot of gold at the end of the rainbow,” he said.

“What the European Commission has said is that if such a source of funding is identified, other countries would also be liable to take a share.

“So, other countries will go after it.

“Were Ireland to take that funding, it’s my judgement that the gain of a single year will be undermined by massive loss, year after year, after the integrity of our business model is undermined.”

Since the European Commission announced last year , that Apple owes Ireland €13.6bn in unpaid taxes, due to loopholes in existing Irish tax law, the Government has been under increasing pressure to ensure the money is handed over.

However, despite the demands from Brussels, from ordinary citizens and even from members of its own cabinet, the Fine Gael-led coalition insists it would damage Ireland’s economy to take the money as it would put multi-national jobs at risk.

Just last month, the European Commission decided to send the case to the European Court of Justice — potentially resulting in significant fines for Ireland, if no change in position is made.

Mr Donohoe said he is “very disappointed” Brussels has chosen to take the action and it is the wrong way to approach the issue.

“I was very, very disappointed, as we have kept the European Commission abreast of all the work we have been doing,” said Mr Donohoe.

“The transaction will be the largest of its kind ever.

“When we set up the fund, it will be one of the top-20 biggest funds in the world. I don’t believe they were right, in initiating the court action against us.

“If they were to win this case, at the European Court of Justice, there could be a fine in the future, but, at this point, I can’t tell you what it will be.”

Mr Donohoe’s comments come as Mr Varadkar prepares to fly to California, as part of a three-day trip, to meet with a number of heads of multi-national businesses that have bases in Ireland.

The meetings are believed to also include a discussion with Apple chief executive Tim Cook, who last year received a similar visit from then finance minister Michael Noonan to calm concerns over the European Commission development.