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Although never officially confirmed, it appears increasingly likely that when Noonan changed Irish tax law to make it impossible to register a non-tax resident company here, Apple change the registration of its HQ from non-resident to Irish resident thereby increasing Irish GDP by nearly 20% in one fell swoop in 2015 and incurring a 12.5% corporate tax charge on previously untaxed profits.  Irish corporate tax receipts increased by over €2 Billion last year and the revenue commissioners seem to think this increase is not a once off.  The Commission claim therefore refers to historic profits only and could be paid off by Apple on a once off basis without much of a blip in its cash pile and market valuation.

The question then arises as to why the Government is so keen to appeal the ruling as it does not impact on future corporate taxation, and hence on future FDI decisions by global corporates. Could it be that the Government is merely going through the motions of showing sympathy and support for the FDI sector and that it will shortly be persuaded, reluctantly of course, to accept the money?

Index of Frank's Diaries

by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Wed Aug 31st, 2016 at 03:20:57 PM EST
[ Parent ]
If the ruling stands, and Ireland retroactively gets tax income, does it get retroactive GDP also?

And if any of these means Ireland should not have been forced to cut down to live up the rules of the fiscal compact will the Commission apologise for its role in the Troika?

by fjallstrom on Wed Aug 31st, 2016 at 07:45:31 PM EST
[ Parent ]
The Commission will require all Irish citizens to genuflect in it's direction three times a day in grateful remembrance of the Commission's vigilance and role in directing such largesse in Ireland's direction. The increase in GDP is already being used to calculate an increase in Ireland's net contribution to the EU budget. At this stage Ireland's GDP "growth" is probably the only thing standing between the EZ and a technical recession...

Index of Frank's Diaries
by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Wed Aug 31st, 2016 at 08:34:10 PM EST
[ Parent ]
Why should the Commission apologise? It was Ireland that understated its GDP by 16% to 20% and reduced its tax revenue by over €1bn a year...

A society committed to the notion that government is always bad will have bad government. And it doesn't have to be that way. — Paul Krugman
by Migeru (migeru at eurotrib dot com) on Wed Sep 7th, 2016 at 02:29:29 PM EST
[ Parent ]


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