Irish PM says Apple ruling cannot be allowed to stand

Irish Prime Minister Enda Kenny said on Wednesday that the European Commission's tax ruling on U.S. tech firm Apple was damaging to Ireland and could not be allowed to stand.

In a speech to the Dail Eireann, lower house of the Irish parliament, Kenny said the ruling is "so profoundly wrong and damaging that it demands an immediate, clear and strong response."

The Dail Eireann was reconvened on Wednesday to debate on the government's motion on the European Commission's decision alleging state aid to Apple.

Last week, the European Commission concluded that Ireland granted undue tax benefits of up to 13 billion euros to Apple in a way that transgressed European Union state aid rules. In response to the ruling, the Irish government decided to appeal to the Court of Justice of the European Union.

"The picture of Ireland painted by the Commission in its decision, as a country prepared to play fast-and-loose with the law to gain unfair advantage, could not be more damaging or further from the truth. This is not a Commission finding that stands by a small country that has played by the rules," the Irish prime minister said.

"It cannot be allowed to stand. We will, as the government has made clear, appeal it before the European Courts, with every expectation of success," he said.

Kenny said his government does not accept the decision the European Commission has made.

"We are determined to ensure that it does not stand. That's why we will appeal it to the European Courts," he said.

He also said Ireland does not offer special favors or deals on tax.

"Everyone is treated equally and according to the law," Kenny said.

Regarding the country's controversial corporate tax, the prime minister said Ireland is "unshakably" committed to its 12.5 percent corporate tax rate.

"We are determined to ensure the highest international standards in transparency in tax, and we will continue to work with others to advance reform at international level," he said.

At the center of the Apple tax controversy are two of the company's subsidiaries, Apple Operations Europe and Apple Sales International.

These firms were registered in Ireland, however, they were controlled in the United States where they held their board meetings. Revenue authorities taxed the companies on the basis of their activities in Ireland, however, the European Commission says both companies should have been taxed by Ireland on the basis of their worldwide income. Endit