Almost nine out of 10 Irish business leaders back the Government's pledge to appeal the European Union's €13 billion Apple tax decision against Ireland, even if fewer than half of them believe Ireland is a model for tax transparency.
A survey by PricewaterhouseCoopers (PwC) of more than 300 Irish chief executives, chief financial officers and senior business leaders found that only 47 per cent believe the State has been consistently at the forefront of tax transparency.
The Government decided last month to appeal against the EU Commission’s ruling that Apple received a sweetheart tax deal in Ireland, and that the iPhone maker should hand over €13 billion of back-taxes, plus interest, to the State.
Minister for Finance Michael Noonan has insisted the technology group received no tax advantage from the Revenue Commissioners, that the EU is intruding into Ireland's sovereignty and that accepting the ruling would drive away foreign direct investment.
Negative headlines
However, the EU’s finding triggered a barrage of negative headlines internationally about Ireland’s tax regime. Pascal Saint-Amans, who is leading the Organisation for Economic Co-operation and Development’s (OECD) base erosion and profit sharing (Beps) project to clamp down on tax avoidance, said last week that under new OECD rules most of the tax from US tech giants such as Apple would be due in the US, not Ireland.
"We need to continue proactive collaboration with our OECD colleagues to ensure that we are recognised as having a corporate tax system that is fit for purpose and at the forefront of global standards," said Joe Tynan, PwC Ireland's head of tax.
“Ireland needs to continue to demonstrate internationally that we have an open and transparent tax regime that is competitive and fair.”
Meanwhile, 45 per cent of respondents said the UK's decision to quit the European Union was more of a threat than an opportunity to their business, though a further 25 per cent see Brexit delivering advantages to them.
