Irish Examiner view: Major downsides to Ireland's €13bn Apple tax windfall
The European Union Court of Justice has ruled that the European Commission was correct in its 2016 ruling that Apple should pay Ireland over €13bn in taxes. Picture: Alamy
The long-running Apple tax saga took a decisive twist yesterday, with the European Union Court of Justice’s ruling that the European Commission was correct in its 2016 ruling that Apple should pay Ireland over €13bn in taxes.
In a statement yesterday, the Government tried to distance itself from previous regimes by stating that case is now of historical relevance only, but the damage has been done to Ireland’s international reputation as an attractive destination for large multinational companies — such as Apple itself, which employs 6,000 people in Cork.
Expect considerable grumbling about Margrethe Vestager, the EU commissioner for competition, who pursued this case with some zeal. Ms Vestager failed in her efforts to make multinational companies such as Fiat, Amazon, and Starbucks pay allegedly uncollected taxes in different EU countries, and Irish politicians will no doubt be cursing under their breath at her success in this case.
That is because even though €13bn is the kind of treasure trove previous ministers for finance could hardly have dreamed of, the implications of the judgement are potentially damaging for our international reputation and economic wellbeing alike.
It adds weight to the perception in the US, for instance, that Ireland is a tax haven attracting large companies to our shores by unfair methods, something presidential hopeful Donald Trump has drawn attention to over the years.
The judgement also creates an impression of uncertainty about the Irish tax regime which may influence foreign companies considering investment here.
The Government faced criticism yesterday for the costs associated with this case, not to mention the plain fact that it had not accepted the €13bn in the first place, choosing to fight that original judgement alongside Apple.
Cynics might point to an astute piece of political theatre here, one in which the Government supported Apple in court but still got billions of euro in the final settlement, but that is to reckon without the longer-term effects of the judgement.
Those billions can be spent in a variety of areas, and with a budget and general election coming very soon there will be no shortage of plans and proposals in that regard.
Yesterday’s decision may have adverse consequences for large multinationals in Ireland, however, which stretch far into the future.
Vapes and vaping are once again under scrutiny as Health Minister Stephen Donnelly seeks approval of draft laws which would ban the sale, manufacture, and import of single-use vapes in Ireland. Under the newly proposed laws, different flavours of vapes — which are currently available on the market — would also be banned.
Has any product ever attracted such negative publicity? The shops which sell vapes are held up as the prime marker of urban decline, while the vapes themselves are significant pollutants when discarded because of their plastic components as well as the lithium and copper to be found in them.
It was interesting to read Taoiseach Simon Harris describe vapes as the “revenge of the smoking industry”, though it is worth acknowledging one flaw in that description.
As a pastime, smoking enjoyed a lengthy vogue as both glamorous — thanks partly to the example set by movie stars in the golden age of Hollywood — and as non-harmful, thanks partly to the endorsement of medical doctors at roughly the same time.
Vaping has hardly enjoyed that kind of benign reputation. Still, despite a poor image, inhaling flavoured smoke has certainly gained a solid foothold as a pastime.
Mr Donnelly’s proposals are welcome, but celebrations might be a little premature.
In his comments yesterday, Mr Harris pointed out that statistics show 13% of 13- to 17-year-olds vaped in the last 30 days — just to demonstrate the urgency.
The sale of vapes to those ages under 18 was banned here last year, with legislation providing for fines of up to €4,000 or a prison sentence of six months for retailers who broke the law. If more than one young teen in eight used a vape in the last month, where are they all getting those vapes?
The new laws are good news for the citizenry and the environment alike but, as ever, proper enforcement of those laws is paramount.
One of the great voices in cinema was silenced this week with the passing of actor James Earl Jones at the age of 93.
Overcoming a stutter to become a stage star who ranged from Shakespeare to August Wilson, he also enjoyed a successful career on screen — from his debut in 60 years ago, to movies as various as , , and .
Add in appearances on TV shows such as — reciting the alphabet — , and , and the sense of a long and varied career becomes even clearer.
Yet he didn’t even appear on screen in his defining role. Jones’s deep, deep bass delivery of Darth Vader’s voice in the Star Wars films was central to their success.
Dave Prowse was the physically imposing actor who donned the mask and cloak on screen, but his light speaking voice wasn’t a patch on Jones’s ominous tones.
Years later, Jones told chat show host Conan O’Brien that it had only taken “about two-and-a-half hours” to record his lines, which were then dubbed into the original film. That voice was a force unto itself.
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