Ireland’s government has detailed plans for the utilization of 13 billion euros ($14.4 billion) in Apple back taxes—an unexpected windfall that the country had previously spent years contesting. In a pre-election budget speech, Irish Finance Minister Jack Chambers referred to a recent European Court of Justice (ECJ) ruling that provided Ireland with one-off revenue capable of being transformational.
Chambers emphasized that Ireland’s economic future hinges on prioritizing and delivering its infrastructure program over the next decade. He stated it is crucial not to use this financial boost for daily expenditures or to narrow the tax base. Instead, the focus should be on addressing challenges in housing, energy, water, and transport infrastructure.
His remarks come following the ECJ’s decision against Apple regarding its tax dealings in Ireland. The final ruling obliges Apple to pay Ireland billions of euros in back taxes—a decision welcomed by tax justice advocates and EU’s departing competition chief Margrethe Vestager.
At the time, Apple expressed disappointment with the ruling, whereas the Irish government maintained that it does not provide preferential tax treatment to any companies.
Ireland’s finance ministry predicted tax revenue of 105.7 billion euros for the year 2024, an increase primarily due to corporate tax receipts and the ECJ’s decision. Despite having one of the lowest corporate tax rates in the EU, Ireland argued for years against Apple repaying the taxes, fearing it might deter investment from multinational companies.
However, the ECJ confirmed the European Commission’s 2016 decision that Ireland provided Apple with “unlawful aid,” necessitating recovery.
In the context of the upcoming general election by March next year, Ireland is currently experiencing a budget surplus of several billion euros, buoyed by strong corporate tax receipts. The Dublin Chamber, representing over 1,000 businesses, expressed support for investing the ECJ decision proceeds in essential infrastructure projects. CEO Mary Rose Burke highlighted the importance of allocating clear funds for capital projects to ensure they move beyond mere aspirations, applauding the government’s commitment to tangible infrastructure funding.
