Europe lets Ireland off the hook after €13bn Apple tax collection

After the Irish government announced it has recovered Apple’s €13 billion tax debt, the European Commission has confirmed it will also drop its lawsuit against the country.

Having begrudgingly collected €13 billion in back taxes from the iLeader, it seems the Irish government has jumped through enough hoops to avoid the courtroom and having to explain why it was willing to help Apple’s tax avoidance strategy.

“In light of the full payment by Apple of the illegal State aid it had received from Ireland, Commissioner Vestager will be proposing to the College of Commissioners the withdrawal of this court action,” Commission spokesman Ricardo Cardoso said in an email statement to Reuters.

While the lawsuit, which was filed on the grounds Apple was receiving illegal tax benefits, was filed last year, Ireland did not collect the first payment until May. That said, the full amount has been collected, currently placed in escrow due to an Irish appeal, and it would seem this is enough for the European Commission.

“While the Government fundamentally disagrees with the Commission’s analysis in the Apple State Aid decision and is seeking an annulment of that decision in the European Courts, as committed members of the European Union, we have always confirmed that we would recover the alleged State Aid,” Irish Finance Minister Paschal Donohoe said.

Ireland is clearly not happy, though you can understand why. In allowing Apple to conduct ‘creative’ accounting practises, the technology industry has thrived in the country. Apple is not the sole reason for this recovery, though it would certainly be a contributing factor. €13 billion is of course a lot of money, though a technology renaissance has meant a lot more to the Irish economy and society. No wonder Ireland was content in keeping Apple happy.

What is always worth remembering is the employment history of European Commission President Jean-Claude Juncker. Prior to bagging the top job in Brussels, Juncker was the 23rd Prime Minister of Luxembourg and also the Minister for Finances, during which time the country turned into a major European centre of corporate tax avoidance. This was also a time Juncker spent a considerable amount of time secretly blocking EU efforts to tackle tax avoidance by multinational corporations.

But at least he’s willing to sue Ireland for facilitating tax avoidance now it suits his agenda.