Irish subsidiary of aircraft leasing firm reports €675m profits

An Irish subsidiary of the world’s largest aircraft leasing firm recorded an 18% increase in pre-tax profits last year to $902 million (€675.6m).

New figures show that the Shannon-based GE Capital Aviation Funding recorded the increase in profits after revenues went up by 2% from $816.9m to $836.9m in the 12 months to the end of December last.

The returns show that the tax on the profits was $105,000 – an effective rate of less than 1%.

Over 2011 and 2012, the firm recorded combined pre-tax profits of $1.667bn and its combined tax bill during the two years was $484,000.

The accounts for 2012 state that the firm would have been liable for a tax bill of $112.7m based on the Irish corporate tax rate of 12.5%.

However, the firm availed of group relief totalling $99.83m and non-taxable items totalling $12.68m.

The tax charge for the year was calculated at $242,000 and as a result of an over-provision of tax of $137,000 in 2011, the bill for the year was $105,000.

The pre-tax profit of $902 million for the US-owned subsidiary of General Electric makes the company one of the most profitable public and private limited companies in the country.

This week, it was confirmed that a Shannon subsidiary, GE Capital Aviation Services Ltd has bought 10 new Boeing 787-10 Dreamliners for $3bn.

The figures for GE Capital Aviation Funding show that the firm’s operating profits increased by 2% from $806.2m to $827.7m.

The filings show that the firm’s income was boosted by a $100m dividend received from subsidiary, General Electrical Capital Aviation Services Ltd. All of the firm’s revenues were generated in Ireland and according to the directors’ report “both the level of business and year end financial position were satisfactory and the directors expect that the present level of activity will be sustained for the foreseeable future”.