The Dublin administration said the EU’s competition watchdog had interfered with its sovereignty.
Ireland is appealing against the order to recoup 13 billion euros and will argue that the Commission is attempting to rewrite Irish tax laws and that Apple’s Irish subsidiaries paid all tax which was properly due.
A Department of Finance submission said:
“The Commission has exceeded its powers and interfered with national tax sovereignty.
“The Commission has no competence, under State aid rules, unilaterally to substitute its own view of the geographic scope and extent of the member state’s tax jurisdiction for those of the member state itself.”
“The purpose of the State aid rules is to tackle State interventions which confer a selective advantage. The State aid rules by their nature cannot remedy mismatches between tax systems on a global level.”
The EU Commission’s inquiry found that Ireland’s treatment of Apple allowed the global brand to avoid taxation on almost all profits generated by sales in the entire European single market.
Ireland has decided to appeal against the order that the iPhone maker pay back taxes. The country has structured its economy around attracting multinationals with its low corporate tax rate but left-wing critics have argued accepting the windfall could bring dramatic changes to national coffers during recovery from a recession.
“The Commission breached the duty of good administration by failing to act impartially and in accordance with its duty of care.”
It also said:
- The Commission had misapplied State Aid law and Apple’s Irish subsidiaries did not pay any less tax than was properly due.
- Europe’s reasoning misunderstood Irish law.
- The Commission failed to act impartially and in accordance with its duty of care.
- It invoked alleged rules of EU law never previously identified and failed to provide proper reasons for its decision.
Apple is also expected to appeal later today.