Revenue statement on EU commission decision on State aid investigation

Speaking today (30/08/2016), after the EU Commission announced its decision in its State aid investigation into the tax treatment of certain Irish branches of Apple companies, Niall Cody, Chairman of the Revenue Commissioners, said that Revenue has cooperated fully with the Commission’s investigation:

"We have provided all relevant information and explanations to the Commission. These demonstrate that Revenue collected the full amount of tax due from Apple in accordance with Irish tax law.

The issue of international tax planning, involving mismatches between different countries’ tax rules, is well known and is the subject of the OECD BEPS Project."

The Chairman went on to explain that "under Irish tax law, non-resident companies are chargeable to Irish corporation tax only on the profits attributable to their Irish branches by reference to the facts and circumstances. The profits of non-resident companies that are not generated by their Irish branches – such as profits from technology, design and marketing that are generated outside Ireland – cannot be charged with Irish tax under Irish tax law."

Mr. Cody pointed out that Apple has confirmed on the public record that the relevant companies were not tax-resident in Ireland, and went on to say "While I cannot otherwise comment on the specific facts of this case, I can confirm that -

  • there was no departure from the applicable Irish tax law by Revenue;
  • there was no preference shown in applying that law; and
  • the full tax due was paid in accordance with the law."

[Ends: 30/08/16]