Ireland is currently facing a challenging dilemma that many other countries would envy: how to spend over 14 billion euros that fell from the sky?
On September 10, the European Court ruled that Apple owes the Irish government 130 billion euros in taxes, plus interest, bringing the total to 141 billion euros, equivalent to 14% of the government’s fiscal revenue for the year. This tax debt has been held in trust by a third-party entity since the ruling in 2016 and has been accruing interest.
Faced with hundreds of millions of euros unexpectedly at their disposal, everyone from politicians to journalists is exploring how to allocate this money. Ideas range from reducing national debt, investing in railways, housing, hospitals, creating bicycle parking spaces, to future investments and even providing welfare benefits. Media outlets have compiled various suggestions based on what citizens are most concerned about.
The most straightforward approach would be to distribute a one-time welfare payment to assist families in coping with rising living costs. For a country with a population of less than 6 million and a strong financial status like Ireland, disbursing this money as a one-time subsidy directly to citizens would mean each person, from adults to children, receiving approximately 2530 euros.
However, Prime Minister Simon Harris has stated that the money will not be used for daily expenses, saying, “The money cannot be used for daily spending, such as putting it into the national pension fund.” Harris emphasized in an interview with Ireland’s national broadcaster RTE that the funds should be utilized to address more pressing social issues such as infrastructure and housing shortages. He noted, “When it comes to housing, water, and energy issues, this country does have shortcomings, and we need to invest in these areas.”
Harris confirmed that the upcoming budget will not include the additional tax payment from Apple, and he and the Cabinet will promptly discuss the matter.
The Ministry of Finance also affirmed that this money will not impact the new budget set to be announced on October 1. The funds will take “at least six months” to be transferred into the Irish treasury.
Finance Minister Jack Chambers stated in a release that he will be engaging with party leaders on this issue in the coming weeks, adding that steps have already been taken to transfer the funds out from the trust account.
The opposition party has urged the government to immediately allocate the funds to address urgent social issues like the housing crisis and medical facility shortages. The number of homeless individuals reached a new high in July, with 14,000 people residing in emergency accommodation centers provided by the state, including 4,400 children.
Leader of the main opposition party Sinn Féin, Mary Lou McDonald, criticized the government for spending eight years fighting the legal battle with the EU over Apple as “reckless and unforgivable.”
The minor opposition party People Before Profit pointed out that the government’s legal expenses related to the Apple case have exceeded 10 million euros over the eight-year period. Party member Richard Boyd Barrett estimated that the tens of billions of euros in tax payments from Apple could be used to build over 40,000 new homes.
Interestingly, the Irish government was not eager for this hefty fine imposed on Apple. The European Commission initiated an investigation into Apple in 2014 due to its European headquarters being in Ireland, and in 2016, the Commission demanded that Irish authorities retrieve 130 billion euros in unpaid taxes from the tech giant. However, the Irish government and Apple jointly appealed the decision in 2019.
A year later, the General Court of the EU ruled to annul the 2016 decision, stating that the Commission did not prove Ireland had granted Apple tax benefits. Consequently, the Commission appealed to the higher Court of Justice of the European Union, which ruled in favor of the EU this month. The European Court concluded that Ireland had provided Apple with an unfair tax advantage over the past two decades and must now reclaim it.
In a statement, the Irish government refuted the EU’s allegations, claiming they had not offered any tax advantages to any company or taxpayer. Nonetheless, they expressed “respect” for the final court ruling.