Apple’s effective tax rate
Senators question reports that Apple paid an exceptionally low effective Irish tax rate, while others defend Ireland’s statutory system and seek reassurance about corporate taxation and the abortion legislation hearings.
Like many in Ireland, I am proud of the prominent role played by Google and Apple in our economy. I accept the statements by the Tánaiste and the Taoiseach that we comply with all of the OECD requirements and are not designated as a tax haven. However, an explanation of two statements is required. According to Apple's CEO, incentive arrangements that it was offered in 1980 factored into its decision to locate in Ireland. According to reports, Apple Sales International only paid an effective tax rate in Ireland of 0.05%, which is incredibly low. In terms of the extent of Government debt, the same considerations apply in Ireland as apply in the US. As such, a wider debate on the issue of tax policy would be worthwhile, in particular European tax policy in light of the fact that it is evolving.
I concur with Senator Bacik regarding the health committee's debate on the protection of life during pregnancy Bill hearings which were held in this Chamber for three days. Most would agree that it was a constructive debate. I welcome the commitment by the Minister of State, Deputy White, to consider some of the issues raised during the hearings, for example, the amalgamation of aspects of some of the Bill's heads, the criminal sanctions on women who avail of abortions and so forth.
I call on the Leader to give particular attention to one issue that arose. Many of the witnesses noted the significant issue of the lack of funding for obstetric services. Our excellent maternal death record has to do with the skill and expertise of professionals, not the level of funding for this critical service. Will the Leader invite the Minister for Health to the Chamber to discuss funding for obstetric services?
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I wish to raise the issue of the corporation tax paid by Apple in this State in the past ten years or more. It has not been clarified. In fact, quite the opposite is the case. Many questions need to be answered. Senator Clune correctly mentioned our 12.5% corporation tax rate, but the majority of multinationals are not paying anything like 12.5%. There is no effective corporation tax rate. This situation contrasts clearly with the taxes that ordinary working people are increasingly asked to pay, for example, property tax and indirect taxes.
Yesterday, Apple's CEO, Mr. Tim Cook, told the US Senate investigation committee that Apple had quietly negotiated a corporate tax deal directly with the Irish Government. The Government has a responsibility to explain how the CEO of a multinational company could make such a statement. If there was no direct negotiation with the Government or a Minister, we need to be told about the contacts between Apple and representatives of the Revenue Commissioners or the Department of Finance. I will provide the facts quickly. Mr. Cook confirmed that Apple paid on average a 2% corporation tax rate in this State for the past ten years. In 2011, it paid a rate of 0.05%. It is not correct to claim that Apple's subsidiaries employ 3,500 people in Ireland. One of them employs no one and the other employs 250 people. Multinational companies are using this State as-----
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The Senator would love to have a multinational in Waterford.
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Some multinational companies are using this State in a chain of cash movements for the purpose of significant tax avoidance. The Government needs to clarify what arrangements are in place for Apple and other multinationals.
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There is a difference between having a corporation tax rate that is-----
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I agree that we held three excellent days of hearings on the abortion debate, to which the Seanad Chamber was appropriate. During the closing session yesterday, the Minister of State, Deputy White, gave a commitment that everything raised in the course of the hearings would be addressed and considered by the Government when preparing the full text of the Bill. Will the Leader ask the Minister of State to keep his word? The expertise at the hearings was second to none. Some of the experts outlined the dangers of unsafe practices when not proceeding on the basis of best medical science and advice. An expert in medical ethics confirmed yesterday that the State would be left open to liability if it did not proceed in that way.
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That was my question. While I am grateful for the Minister of State's commitment, we want these concerns to be taken on board in the Bill. I have no difficulty with Senators Hayden and Bacik's comments on the relaxation of penalties on women who have abortions.
Although I support Senator Clune in calling for a confirmation that there is no special tax rates for corporations in this country, I raise a concern about the serious charge of international tax evasion. Where did that charge arise? The public needs reassurance about our tax rates. We need to have that cleared up and for that reason I support the call for clarification. It is a very serious charge and must be clarified for once and for all.