Zappone considered leaving Government over Apple appeal

Minister for Children and Youth Affairs Katherine Zappone has admitted she considered pulling out of Government last week while the Cabinet tried to agree on whether or not it would appeal the European Commission's €13 billion Apple tax ruling.

While there was deadlock in Cabinet on Thursday night, it was understood that the Independent Alliance Ministers Shane Ross and Finian McGrath were willing to support the appeal, but there was continuing uncertainty over Ms Zappone's position going into Friday morning.

By Friday afternoon, the Cabinet had announced that it had agreed to appeal the European Commission ruling that Apple illegally received state aid from Ireland equating to €13 billion.

When asked by RTÉ's Today with Sean O'Rourke Show if at any stage during Cabinet discussions on the Apple tax ruling appeal that she had considered pulling out of Government, Ms Zappone replied "oh yes, yes I did."

“It was a very, very difficult few days,”she said.

She said that when she asked the Taoiseach for more time, he had asked her would she be able to support the appeal.

“I said I may be able to, and I may not be able to. That’s all I could say at the time.”

‘Landmark ruling’

Ms Zappone’s comments come as European Commission president Jean-Claude Juncker defended the EU’s finding against Apple as a “landmark ruling” that was made “without discrimination and without bias” in his first public comments on the case.

Speaking at the G20 summit in China Mr Juncker said, “National authorities cannot give tax benefits to some companies and not to others. This is the level playing field that the commission is always working to defend. We apply these rules without discrimination and without bias.”

Mr Juncker, who was prime minister of Luxembourg when a number of tax rulings were struck with multinationals which are now under investigation by the European Commission, said the Apple ruling was the result of “intensive work which has been going on for many years”.

European Commissioner for Agriculture and Rural Development, Phil Hogan, rejected claims the commission’s decision that Apple received illegal state aid from Ireland was politically motivated.

Mr Hogan said there was a three-year investigation and that matter will now be adjudicated in the European Courts of Justice.

“As president Juncker said, the decision is based on facts and not on the basis of politics”.

Speaking to RTÉ in west Cork on Monday morning, Mr Hogan said he had no choice but to support the decision of EU competition commission Margrethe Vestager. The alternative, he said, would be to resign.

US multinationals

Since the ruling, Minister for Jobs Mary Mitchell O’Connor says she has had been contacted by a number of US multinationals.

Speaking in Brussels where she is due to meet EU trade commissioner Cecilia Malmstrom for talks amid signs that the EU-US trade deal is running into difficulty, Ms Mitchell O’Connor said her message would be that Ireland’s corporate tax rate will not be compromised.

“We totally reject that there was state aid or that there was a special deal done for Apple,” she said, adding that the Government had employed a team of lawyers to fight its case.

Her comments come ahead of a series of scheduled meetings between EU officials and members of the Government in the coming week during which Ministers are expected to raise their concerns that the European Commission’s competition arm has overstepped its powers in retroactively tackling Apple.

Government support

The Government’s position has been galvanised by a wide-ranging endorsement of its response to the ruling by Fianna Fáil leader Micheál Martin.

He rowed in with strong support for the Government’s appeal and echoed many of the attacks made by Taoiseach Enda Kenny and Mr Noonan, including their claims the commission was unfairly targeting smaller states and trying to undermine Ireland’s 12.5 per cent corporation tax rate.

The Dáil, which has been recalled earlier than expected from its summer recess, will debate the issue all day on Wednesday.

Sinn Féin has tabled an amendment to the Government motion calling on the State to use the €13 billion in taxes expected from Apple on essential services. However, the Government motion is expected to have a comfortable majority, with support coming from Fianna Fáil and Labour.