In response to recent accusations by a U.S. Senate committee labeling Ireland a "tax haven" for Apple, the Irish government is launching a diplomatic offensive by proactively dispatching ministerial-level officials. During last week's hearing involving Apple executives, remarks made by the U.S. Congress were said to have damaged Ireland's reputation.
Irish Minister for Jobs, Enterprise and Innovation Richard Bruton stated on the 27th that the Irish government is preparing to send a letter to the U.S. Senate Permanent Subcommittee on Investigations to refute allegations of being a "tax haven" or having reached "special agreements" with Apple. The Irish government will also send several ministerial-level officials abroad to explain Ireland's tax policies to relevant parties and strive to mitigate the damage from last week through media interviews. Irish Tánaiste Eamon Gilmore will also launch a "charm offensive" when he meets with officials from the Organisation for Economic Co-operation and Development (OECD) this week.
Ireland is currently in the recovery phase of a financial crisis and is in urgent need of foreign investment; multinational corporations provide jobs for 150,000 Irish people. The Irish government fears that the U.S. Senate committee's accusations will encourage organizations such as the OECD and the European Union to pressure Ireland into revising its tax policies.
Last week, the U.S. investigative committee accused Dublin of being at the heart of Apple's "tax avoidance strategy," saving the company $44 billion in taxes on what it termed "offshore income that should have been taxed." The investigation report also pointed out that Apple had reached a special agreement with Ireland, allowing it to pay a tax rate of less than 2% on various profits, far lower than Ireland's 12.5% corporate tax rate.
Also this month, a British parliamentary committee focused its attention on Ireland's tax policies and highlighted Google's attempt to avoid taxes through the so-called "Double Irish" arrangement.
Bruton stated that while it is true that some companies exploit tax policies in different countries for arbitrage, Ireland is willing to participate in international joint efforts to curb tax avoidance. He also criticized the practice of some countries signing "special agreements" with multinational corporations, stating that it harms Ireland's competitiveness.
