MEP to tell Naas meeting that the government has committed 'an act of betrayal against Irish taxpayers'

Sinn Féin MEP Matt Carthy says the recent decision by Government to appeal the Apple tax ruling was “bad for Ireland, our people and our international reputation”.

Carthy, a member of the European Parliament’s Economic Committee is to address a public meeting in Naas, Co. Kidare this evening to highlight the issue of corporate tax dodging and corruption.

Speaking this morning in advance of the meeting, Matt Carthy said:

“The Government is to spend millions in an attempt to avoid recouping the €13 billion in unpaid taxes from the second wealthiest corporation in the world - when our health service is crumbling and there are thousands of people homeless across this state.

"It’s an act of betrayal against Irish taxpayers, families and small businesses.

“The ruling reveals evidence that Revenue endorsed a scheme in its tax rulings in which Apple was allowed to artificially internally allocate the profits of two of its subsidiaries in a way that had ‘no factual or economic justification’.

“The Government can claim that this is not Ireland’s problem but it’s plain for all to see that Revenue actively assisted Apple in avoiding paying tax anywhere.

“Apple’s method of routing all of its European sales through its Irish subsidiaries was beyond the scope of this state aid investigation.

"But if Apple wants to book all of its sales for Europe through the Irish state then it needs to pay corporate tax here. It’s as simple as that.”

Carthy continued:“Sinn Féin has demanded a public inquiry into the circumstances in which these tax rulings were issued.

“If Finance Minister Michael Noonan is so confident that the sweetheart deal with Apple was not illegal then he should open such an inquiry.

"The Government should also stop assisting Apple in delaying the publication of the state aid ruling.”

However, Carthy also contends that proposals for a common corporate tax base across the EU will not work and will infringe on Ireland’s ability to set its own tax policies. This he insists will be bad news for ordinary families and workers.

“The idea of a common EU corporate tax base would infringe on Ireland’s ability to direct our own tax policy, best suited to our needs, and those who would suffer are ordinary families and workers.

“There are legitimate reasons to maintain our right to diverge from common EU rules on tax deductions and exemptions – without, of course, facilitating tax avoidance.”

“The problem with the current proposals from the EU Commission is that they are limited to the operations of EU taxpayers in the EU and, as a result, much of the current tax system would remain intact. The Commission’s proposals won’t solve the problem of international transfer pricing or profit-shifting to offshore centres.

“Sinn Féin supports Irish, EU and international efforts to combat tax avoidance but they need to be well-designed, effective and carried out in a way that keeps important economic decision-making powers in the hands of local elected governments.

“The Irish Government’s actions in relation to the Apple case – by denying the state has played a negative role in global tax avoidance, and supporting Apple’s appeal against the ruling – has only weakened our position in relation to negotiating on this issue.”