Austrian chancellor suggests Apple and Starbucks pay less tax than sausage stands

The Dáil will be recalled next Wednesday to approve decision to appeal Apple tax ruling

Austrian chancellor suggests Apple and Starbucks pay less tax than sausage stands

Austrian Chancellor Christian Kern. Image: Virginia Mayo / AP/Press Association Images

The Austrian chancellor has suggested that sausage and Viennese coffee stands pay more taxes in Austria than multinational companies.

Christian Kern of the centre-left Social Democratic Party spoke to Der Standard newspaper after the European Commission found that Apple's tax deal with Ireland was illegal under EU state aid rules.

Mr Kern said: "Every Viennese cafe, each [sausage stand] pays more taxes in Austria than a multinational group. That goes for Starbucks, Amazon and other companies.

"It is important that the European Commission has proposed a €13 billion tax payment for Apple. What Ireland, the Netherlands, Luxembourg or Malta do is not supportive to the rest of the European economy," he added.

Meanwhile, the Dáil will be recalled next Wednesday to approve the Cabinet's decision to appeal the ruling, and to set up an independent review of corporate taxes.

The Irish Independent reports that Angela Merkel is supporting a decision to appeal, amid concerns that the ruling against Ireland will hurt investment in Europe. 

Finance Minister Michael Noonan has branded the ruling as "bizarre and outrageous".

Apple CEO Tim Cook said the EU verdict was "an effort to rewrite Apple's history in Europe, ignore Ireland's tax laws and upend the international tax system in the process", adding that the company will appeal.