Talks between Independent Ministers and Fine Gael today will seek to defuse a growing crisis in Government over how to respond to the European Commission's €13 billion tax ruling against Apple over its operations in Ireland.
Independent Ministers yesterday refused a request from Minister for Finance Michael Noonan and Taoiseach Enda Kenny to agree an appeal against the ruling.
Fine Gael Ministers now say that the split threatens the future of the Government, and that if agreement is not reached to appeal against the tax decision, then the collapse of the Government and a general election is in prospect.
Apple ruling
Sources in the Independent Alliance say they are willing to support an appeal against the ruling but want the return of the Dáil for a vote on the issue and an examination of how Ireland’s corporate tax rules are used by multinationals.
It is understood Minister for Transport Shane Ross was yesterday granted access to a number of confidential documents dealing with taxation.
At the end of a lengthy Cabinet meeting yesterday, variously described by Ministers as “tense” and “frustrating”, both sides agreed to adjourn the meeting until tomorrow.
It is expected that there will be further meetings today between Ministers and officials in an effort to reach agreement before tomorrow. Fine Gael is insisting that a decision to back the appeal must be reached then.
A statement issued in Government Buildings yesterday evening said it was “agreed to adjourn the meeting to allow further time to reflect on the issues and to clarify a number of legal and technical issues with the Attorney General’s office and with officials.
“The Government meeting will resume on Friday at 11am to make a decision on the matter.”
After reserving their position on Tuesday, Mr Ross and Minister of State Finian McGrath hardened their position yesterday, insisting on the Dáil being recalled in return for their support for an appeal.
Sources familiar with events yesterday said Minister for Children Katherine Zappone also expressed firm opposition to approving an appeal and sought time to consider the ruling.
Tax justice
They also demanded a motion on tax justice and confirmation of the steps that have been taken, including the ending of the so-called double Irish arrangement and a new country-by-country reporting protocol.
A Fine Gael Minister, speaking on condition of anonymity, said Mr Kenny and Fine Gael Ministers did not object to a recall of the Dáil but insisted the Government first make a decision on an appeal.
If such a decision is reached the Dáil may be recalled to debate a motion approving the Government’s approach. Fine Gael Ministers resisted any recall in advance of the Cabinet’s decision on the appeal being made, he said.
“The Independent Alliance needed a win on an issue that will be very tricky for it,” said a Fine Gael Minister, “and that [win] is the Dáil being recalled.”
Also yesterday, the Government revealed Mr Kenny had a phone conversation with Apple chief executive Tim Cook last Sunday, at Mr Cook’s request, ahead of the ruling.
It said, during the call, Mr Cook recommitted himself to the company’s operations in Ireland, and Mr Kenny expressed support for Apple’s presence here.
