The European Commission (the Commission) rendered its decision on August 30, in its investigation into the alleged State aid issues associated with tax arrangements of a United States (US) multinational company (MNC), agreed with the Irish Government. The Commission concluded that two tax rulings issued by Ireland to two Irish-incorporated companies (the Companies), which both form part of the MNC group, have substantially and artificially lowered the tax paid by the MNC in Ireland since 1991. The Commission ordered that Ireland must now recover the unpaid taxes in Ireland for the years 2003 to 2014 of up to €13 billion, plus interest. The Commission has stated that the decision does not call into question Ireland's general tax system or its corporate tax rate and no other companies are subject to the decision. The Irish Government has confirmed that it will appeal the ruling as it disagrees profoundly with the Commission's decision. A press release issued by the Irish Department of Finance confirms that "Ireland's position remains that the full amount of tax was paid in this case and no State aid was provided." The MNC has also said that it will appeal the ruling.

A Tax Alert prepared by EY's EU Tax Services group, and attached below, provides additional details.

———————————————
ATTACHMENT

Full text of Tax Alert 2016-1510