Apple tax case was 'not reputationally damaging' for Ireland, says IDA
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A briefing for the boss of the IDA said the €13bn Apple tax judgment against Ireland was “not reputationally damaging, although unfortunate.”
Speaking points prepared for CEO Michael Lohan said feedback from international clients suggested it had not changed the perception of Ireland for investors.
Mr Lohan, “if pushed” on what the Exchequer should do with the tax windfall, was advised to recommend “continued investment in infrastructure” to help attract foreign direct investment (FDI). The briefing said there had been constraints in “supply and planning” and this might be an area the government could look to as it spent the funds.
The speaking points were prepared for Mr Lohan in September after the European Court of Justice ruled Ireland had given Apple illegal tax advantages.
Mr Lohan was told the judgment should be put in context as a “historical case” and one that needed to be looked at through a “different prism”. It said it related to just a single company and that tax was only one of the many reasons foreign firms came to do business in Ireland.
The speaking notes then suggested the IDA CEO should “pivot to all the reasons why companies invest”. It said Ireland did not give preferential tax treatment to any company and that this was “the government position and that of IDA Ireland”.
The briefing said: “Furthermore, we welcome the clarity on taxation that this brings. More importantly, our clients welcome this clarity.
If asked whether Ireland was trying to “sit on two horses” when it came to its relationship with the EU, Mr Lohan was advised to say the country was “firmly and unwaveringly pro-European.” The speaking notes said the country offered an attractive investment proposition but that we also had a “special and unique relationship” with the United States.
The IDA CEO was briefed as well on how to handle questions around whether the Apple decision would make things harder for Ireland. It said that while global competition was “fierce” and Ireland was “operating against a challenging backdrop,” the country had a strong track record in attracting FDI.
The speaking notes said: “75+ years — we know what we’re doing … companies are in good company when they locate here.”
Other positives to put forward were a “unique partnership model, [and a] unique ecosystem that facilitates relationships unlike elsewhere.” It also said Ireland had a highly skilled talent pool, a stable environment, and access to the EU marketplace and all the benefits that brings.
Asked about the briefing, which was released under FOI, the IDA said they had nothing further to add to the contents.