Ireland’s government has unveiled its plan to invest €13 billion ($14.4 billion) in back taxes from Apple into critical infrastructure projects, including housing, energy, water, and transport. The announcement comes three weeks after the European Court of Justice (ECJ) ruled against Apple in a high-profile tax case, requiring the U.S. tech giant to repay the sum.
In a pre-election budget speech, Irish Finance Minister Jack Chambers emphasized the one-off revenue’s potential to be “transformational” for the country. He stated that the funds should be used to address key infrastructure challenges rather than for day-to-day government spending or to narrow the tax base.
“It is this government’s view that we should utilize these revenues to address the known challenges that we face in housing, energy, water, and transport infrastructure,” Chambers said. He also stressed the importance of prioritizing these investments to ensure Ireland’s long-term economic performance.
Ireland’s finance ministry has forecasted tax revenue to hit €105.7 billion this year, an increase of €13.6 billion, primarily due to corporate tax receipts and the ECJ ruling.
The ECJ’s ruling on September 10 upheld the European Commission’s 2016 decision that Ireland had granted Apple “unlawful aid,” which needed to be recovered. Despite Ireland’s initial resistance to reclaiming the funds, the ruling has been welcomed by tax justice advocates and the outgoing European competition chief, Margrethe Vestager, who called it a “huge win” for European citizens.
Apple expressed disappointment with the decision, while the Irish government maintained that it did not offer preferential tax treatment to any company. For years, Ireland had argued against collecting the back taxes, fearing it might damage its reputation as a favorable destination for foreign investment. Ireland is known for its low corporate tax rate, which has attracted many multinational corporations, including Apple, which uses the country as its EU base.
As Ireland prepares for its general election next March, the country is experiencing a budget surplus, partly driven by robust corporate tax receipts. Chambers emphasized that the Apple tax windfall would be strategically invested in essential capital projects rather than used for short-term fiscal measures.
The Dublin Chamber, representing over 1,000 businesses, praised the government's commitment to investing in “infrastructure essentials” and ringfencing funds for water, wastewater, and electricity grid improvements. “Without the clear allocation of funds, all such projects are merely aspirational,” said Dublin Chamber CEO Mary Rose Burke, welcoming the tangible funding for these vital areas.
Ireland's plan to channel the Apple windfall into long-term infrastructure projects reflects the government's focus on sustaining the country's growth while addressing pressing issues such as housing and energy infrastructure.
