The Government has mounted an abrasive and vigorous campaign to restore the State's international reputation on the back of yesterday's Cabinet decision to appeal the €13 billion Apple tax ruling.
Taoiseach Enda Kenny and Minister for Finance Michael Noonan used the unanimous Cabinet decision to appeal the European Commission ruling as a basis for broadening the debate to include an uncompromising defence of the State's tax sovereignty.
Both men also implied strongly that the commission’s ruling formed part of a larger effort to undermine Ireland’s 12.5 per cent rate of corporate tax.
Mr Noonan launched an extraordinary attack on the European Commission and some other EU member states, claiming they were trying to “establish a bridgehead” to challenge Ireland’s 12.5 per cent rate, one of the lowest in the EU.
In equally robust language, the Taoiseach portrayed the ruling as part of a wider pattern where powerful states and interests were lined up against Ireland.
‘Small nation’
“I make no apology whatsoever for the decision to appeal this,” said Mr Kenny. “This is about us as a sovereign nation. This is about the rights of a small nation. I’m not sure if the European Commission wants to ingratiate themselves with more powerful countries than ours.”
Mr Noonan, when asked if this was an attack on Ireland’s tax policies, replied: “I think they are establishing a bridgehead. There is a lot of envy across Europe about how successful we are in putting the HQ of so many companies into Ireland and especially into Dublin.
“You will recall the Taoiseach’s first EU meeting in 2011. There was an attempt to bully him, by president [Nicolas] Sarkozy in particular, to bring the corporation tax rate up to 15 per cent as a quid pro quo for the bailout programme.
“I think that was a dreadful thing to do at the time and there are still people with the same view that Ireland is doing too well in terms of foreign direct investment and they would like to change the 12.5 per cent regime.”
The Minister, in a thinly disguised criticism of EU competition commissioner Margrethe Vestager, said: “No bridgehead by any commissioner is going to change that perspective in Ireland. We will fight it at home and abroad and in the courts,” he declared.
At yesterday's Cabinet meeting, Independent Ministers Shane Ross, Finian McGrath and Katherine Zappone did wring some concessions from Fine Gael in return for their support – namely an early recall of the Dáil next Wednesday, a review of the tax treatment of multinationals here, and strong moves towards tax justice and transparency.
The Taoiseach has also agreed to an “independent expert” carrying out a review of Ireland’s corporate tax system.
