Pre-tax profits at Apple's main Irish subsidiary jump to €63.4bn

The pre-tax profits recorded by the Cork-based Apple Operations International Ltd and subsidiaries equate to daily pre-tax profits of $189 million to the year ending September 2022
Pre-tax profits at Apple's main Irish subsidiary jump to €63.4bn

Gordon Deegan

Pre-tax profits at the main Irish subsidiary of Apple increased by 2 per cent to $69.3 billion (€63.4 billion) last year.

The pre-tax profits recorded by the Cork-based Apple Operations International (AOI) Ltd and subsidiaries equate to daily pre-tax profits of $189.87 million for the 12 months to the end of September 24th, 2022.

The business recorded the increase in pre-tax profit as revenues rose by $11.69 billion or 5.5 per cent from $211.05 billion to $222.75 billion for the 12-month period.

AOI is registered at the company’s Holyhill campus in Cork and covers most of Apple’s non-US subsidiaries. The company acts as a holding company for a number of Apple subsidiaries, manufacturing and developing everything from the company’s iPhone and iPad products to Mac computers.

The directors stated the group has international operations, with sales outside Ireland representing a majority of the group's net sales.

The new consolidated accounts show the business paid dividends of $20.7 billion last year to Apple Inc, down on the $25.3 billion dividend payout in 2021. The accounts noted the dividends are fully subject to US tax.

AOI incurred a corporation tax charge of $11.08 billion last year across a number of countries where Apple operates, which excludes US-based taxes. The figure was down marginally on the $11.57 billion tax liability for 2021.

The firm paid corporation tax of $7.69 billion, but the total provision for corporation tax of $11.08 billion also takes account of deferred tax of $3.29 billion.

The accounts do not disclose corporate tax paid in Ireland, but stated a 12.5 per cent corporate tax charge would have resulted in corporation taxes of $8.66 billion.

The filing does not say where the tax was paid, but the greatest share is likely to have been paid in Ireland, where the company is based.


Underlining the importance of Apple’s operation to the State’s corporation tax takings, last year the Exchequer received total corporation tax receipts of €22.6 billion, 48 per cent or €7.3 billion above the total from the previous year.

The accounts referred to the successful appeals by Apple and the Government against the European Commission's decision six years ago that the tech firm owed Revenue €13.1 billion in back taxes, plus interest of €1.2 billion.

In July 2020, Europe's second-highest court ruled that the Government did not give Apple any State aid and the accounts also refer to the European Commission appealing that decision to the European Court of Justice.

A note attached to the accounts stated Apple may request approval from Minister for Finance Michael McGrath “to reduce the recovery amount for certain taxes paid to other countries”.

The note added that as of September 24th last year, the adjusted recovery amount was €12.7 billion, excluding interest.

The €12.7 billion plus interest is funded into escrow where it will remain restricted from general use pending the conclusion of all legal proceedings.

The filing also stated AOI recorded post-tax profits of $58.22 billion last year.

The number employed at AOI and its subsidiaries last year totalled 56,639, up 4,076 on the tally noted in September 2021. Some 6,000 of those employees are based in Ireland.

Staff costs totalled $6.33 billion, which included a share-based compensation of $1.39 billion.

The company’s cost of sales totalled $126.29 billion, resulting in a gross profit of $96.46 billion.

AOI’s selling, general and administrative expenses totalled $11.38 billion for the year, while the group’s research and development costs totalled $15.5 billion, up from $12.4 billion in 2021.

AOI’s shareholder funds at the end of last September amounted to $97.64 billion, compared to $58.77 billion the previous year, while the firm's cash funds increased from $16.8 billion to $17.48 billion during the same interval.

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