LAST UPDATE | 10 Sep 2024

MINISTER FOR FINANCE Jack Chambers has refused to be drawn on how the government plans to spend the €13.8 billion in unpaid tax from the Apple. 

Tonight, The Department of Finance confirmed that the value of funds currently held in the escrow account is €14.1 billion. A total of €455 million has been paid out to other countries. 

Speaking to the media at the Department of Finance this afternoon, the minister said that transferring the unpaid tax from the Apple escrow fund to Ireland will take “a number of months” and will have no impact on the upcoming budget. 

Despite repeated questioning, the finance minister and Public Expenditure Minister Paschal Donohoe refused to outline what areas the money might be spent on, other than stating that discussions with party leaders will be take place as to what the next steps are. 

They said there will be careful consideration of how the revenue should be used, with Donohoe stating that it will take into account the Fiscal Advisory Council’s and the European Central Bank’s recommendations.

How will we spend it? 

“We will reflect on, first of all, the amount that will be made available, and that isn’t clear at this point,” Chambers said, telling The Journal that ”a mature discussion” will take place so a “sensible decision” can be made.

“I’m not going to speculate on any specific measure that might be made and obviously, we’re all engaged with the wider public and their priorities, and we want to make sure that their priorities are reflected,” he said.

We’ll give careful consideration to this,” he added. 

When put to him that the revenue might go towards debt writedown, Chambers disputed that it must go towards debt reduction.

Chambers confirmed that the Court of Justice of the European Union (CJEU) decision was the final ruling in the case and said Ireland “will, of course, respect the findings of the court regarding the tax due in this case”.

Unpaid taxes court decision 

The CJEU the highest court in the EU, today ruled that Apple must pay €13 billion to Ireland in unpaid taxes. 

Eight years since the EU Commission initially found that Ireland had given Apple illegal tax advantages, and after challenges in lower courts, today’s ruling is binding. 

Successive Irish governments, alongside Apple, had argued that the tax was not owed but the EU Commission pressed on with the case.

The assets in the escrow fund stood at €13.774 last year. Speaking at a press conference this afternoon, Chambers and Public Expenditure Minister Paschal Donohoe said the amount is currently in the region of €14 billion. 

Apple has stated that the company will take up to a $10 billion earnings hit following the ruling today. Apple “expects to record a one-time income tax charge… of up to approximately $10 billion,” in its fiscal fourth quarter.

Chambers said the Department of Finance will begin the processes of taking the funds from the escrow account.

Finance Minister Jack Chambers says he needs to be clear that the Apple ruling on €13bn tax owed will not have an impact on this years budget.

He says the process of moving the funds from the escrow account could take a number of months. pic.twitter.com/KysXktSOeG

— Christina Finn (@christinafinn8) September 10, 2024

“This is a complex process which is expected to take a number of months to conclude,” he said. 

“The Government will need to carefully consider what is the best course of action to take with this revenue, and I’ll be engaging with the party leaders over the coming weeks on this matter.”

Chambers also confirmed that the process “will not impact the parameters already set out for Budget 2025″. 

“The Summer Economic Statement published by Government in July has set out the available package for the budget, and Minister Donohoe and I will deliver Budget 2025 on 1 October in line with those parameters,” he added. 

Public Exchequer Minister Paschal Donohoe also said that the level of spending for this year’s budget remains unchanged. 

No ‘special arrangements’

Donohoe said Ireland “did not and does not make special agreements through tax policy with individual companies”. 

“We have and had an independent authority in the Revenue Commissioner that impartially implements the tax policy of the day and does so purely with a view to implementing the law,” he said.

“That was the case then, it is the case now, and in the years that have gone by, Ireland has now made a series of very significant changes to our tax code to bring the operation of our corporate tax policy into line with the standards of today.”

Chambers said Ireland’s corporate tax regime “is built on certainty and predictability for multinational companies that have made Ireland their home, that have been established here for many decades and are significant employers across our economy”. 

He said the global tax environment has changed dramatically over the last decade, and Ireland “has been at the forefront of these developments”.

The finance minister also said he had not spoken to Apple today but knows they are a committed employer in Ireland, employing 6,000 employees.

Asked about claims that could be made by other jurisdictions, Chambers said it’s ”not possible to comment on the likelihood of such claims”, but he said some “third party adjustments” had already been made. 

The finance minister confirmed that there has been a marginal reduction in the overall revenue in the context of third country adjustments, but he added that he is not aware of any further third country adjustments presently being made.

“But I can’t predict the likelihood of them occurring in the next number of months,” he said. 

He said the current working assumption is that the majority of the revenue will be available to the Irish government.

“But again, that’s subject to potential other third country adjustments, so we can’t be absolute on that,” he added.

Chambers is not aware of any prospective other similar cases being prepared against Ireland.

He said the current cost to the Exchequer in terms of legal fees has been €10 million. 

With reporting by Christina Finn