William Gallagher
The Irish government has responded to pressures for it to use Apple's $14.4 billion tax payment to help with COVID-19 support measures, pointing out such a move is legally impossible.
Following a European ruling in 2016, Apple has paid $14.4 billion in back taxes to Ireland, and Irish politicians have been campaigning for it to be spent on the country's coronavirus response. However, the Taoiseach, or Prime Minister, Leo Varadkar, has responded that this is impossible — and that proponents are simply talking "rubbish."
Sinn Fein opposition leader Mary Lou McDonald, this week said that the Irish government could "right this minute" use the funds from Apple. She argued that it could be used to help income support for people who have been forced out of work.
"Mary Lou McDonald should know better," Varadkar told Irish broadcaster RTE. "The Apple money is in an escrow account and that is where it is being held until the European Commission decides where that money is going to go."
"The European courts will decide whether that money either belongs to Apple or comes to the Irish revenue commissioners and then has to be distributed out among the counties of Europe," he continued. "It's not ours to take and it's now before the courts."
"She should know better before coming out with that kind of rubbish," he concluded.
The money continues to be held in escrow while Apple and the Irish government itself appeal against the EU's decision. A final outcome could potentially take years more, and in the meantime, Tim Cook has been arguing in favor of radical tax reform worldwide.
Charles Martin
Christine McKee
Wesley Hilliard
Malcolm Owen
Andrew Orr
Sponsored Content
2 Comments
That’s right, because it isn’t Ireland’s money. Apple hasn’t paid Ireland; it’s just put the money in escrow. The money is still Apple’s. It’s still reported as part of Apple’s cash holdings (i.e. its cash, cash equivalents, and marketable securities). That money is just, for Apple’s purposes, restricted from general use because it’s in escrow.
It’s not only if the Apple funds were in escrow or not. Government money sits in a consolidated fund: it doesn’t matter where the money originally come from, in the end it is all in the consolidated fund until transferred out for a specific purpose. As money is totally fungible, you can’t tell where money in the fund is originally from.
This little bit of aggrandisement just demonstrates this individual is a self promoting politician of the worst kind unfit for government, especially unfit for the role of overseeing the use of Other Peoples’ Money, which is all the money a government ever has.