Ireland’s loss could be a UK gain - John McLellan

The European Union’s top court has rejected Apple’s final legal challenge against an order to repay 13 billion euros in back taxes to Ireland

The Irish Government fought for eight years to protect the tax incentives it offers big companies to base their European operations in the Republic, but this week it ran out of road as the higher court of the ECJ ordered Apple to pay a whopping £11 billion (€13 billion) in back taxes.

It’s a funny government that goes to court to stop a company coughing up billions in unpaid tax, but it demonstrates how much successive Irish administrations have valued the benefits they offer big corporations.

By the same token, it points the way for a pro-growth UK government to take advantage of its freedom from ECJ decisions and entice organisations like Apple to think again about the benefits of a British HQ.

With worldwide revenue of $86 billion in the quarter to June, and a return of $32 billion to shareholders, Apple can certainly afford the fine, but the Irish love affair with the EU might not be so cosy.

Apple’s counter argument, that it pays its taxes in the US, also undermines the SNP argument that Ireland shows what an independent Scottish Government could achieve for the Scottish economy.

Set aside the political differences between the ruling Irish parties and an SNP more like Sinn Fein, it demonstrates that cash cows like Apple don’t necessarily deliver milk for the host country.