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| Michael Noonan
was also in the Global Tax 50
2014,
2013, and
2011 |
While most finance ministers would be happy to collect
€13 billion ($14.5 billion) in taxes from a multinational
company, Michael Noonan is not one of them. The Apple case was
one of 2016's biggest tax-related dispute and it received even
more attention after Ireland said it "disagreed profoundly"
with the European Commission's decision that Apple had received
illegal tax benefits and should pay billions in back taxes to
Ireland.
After the European Commission's attack on the "double Irish"
in 2014, a strategy used by many multinationals to lower their
European tax bills, the Apple decision was a big blow to the
country, which has the lowest corporate tax rate among EU
member nations at 12.5%.
"The key issue is to defend our right as an independent
country with control over our tax system and how it is applied
by Revenue and Revenue is adamant there was no selective
treatment," Michael McGrath, finance spokesperson for the
Fianna Fáil party told Irish broadcaster RTE
after the Apple decision was announced. Noonan added that it
was "necessary to defend the integrity of our tax system; to
provide tax certainty to business; and to challenge the
encroachment of EU state aid rules into the sovereign member
state competence of taxation".
"Defend" is exactly what Noonan intends to do. After gaining
approval from the Irish parliament to appeal the Commission's
state aid decision, an appeal was filed in the European Courts
on November 9. "The government has decided unanimously to bring
an appeal before the European Courts to challenge the European
Commission's decision on the Apple State aid case," Noonan
said. "I believe that there are some very important principles
at stake in this case and that a robust legal challenge before
the Courts is essential to defend Ireland's interests. The full
amount of tax was paid in this case and no state aid was
provided. Ireland did not give favourable tax treatment to
Apple. Ireland does not do deals with taxpayers."
Speaking on Bloomberg TV, Noonan said there are two phases
to the appeal: the ordinary European court and then the
European Court of Justice. "It will probably take four years,
probably more."
In addition to this, in this year's budget Noonan announced
that he would reduce the burden on taxpayers by just under
€300 million ($330.2 million). He also published an update
on the government's international tax strategy to highlight the
progress made over the past year and how the country's
corporate tax regime "meets the highest standards in tax
transparency" in the wake of recent issues. However, finance
minister remained firm that Ireland's very low corporate tax
rate of 12.5% would not be changed, stating that "nobody is
asking for it to be changed".
Separately, he also submitted proposals to parliament on
September 6, amending Ireland's Section 110 tax regime to
charge a potential 25% tax on future profits arising for
overseas investors in Irish loan portfolios.
The budget, additional tax changes, and the controversial
Apple case, secured Noonan a place in this year's Global Tax
50.
Undoubtedly, 2017 will be a crucial year for Noonan and his
government. Defending Ireland's tax system and its
attractiveness to multinational enterprises worldwide will take
priority when the court case against the Commission's Apple
decision is heard. Noonan has used many opportunities to defend
the tax system, but the battle will only get tougher in the
year ahead.