Figures show that the Shannon-based GE Capital Aviation Funding recorded the decrease after revenues went down by 23.5% from $800.32m to $612.34m in the 12 months to the end of December last.
The returns show that the tax on the profits was $238,000 — an effective rate of less than 1%. The accounts for 2014 state that the firm would have been liable for a tax bill of $71.37m based on the Irish corporate tax rate of 12.5%.
However, the firm availed of group relief totalling $72.2m and non-taxable items totalling $4.9m contributing to a tax charge of $238,000.
The pre-tax profit of $571m for the US-owned subsidiary of General Electric makes the company one of the most profitable public and private limited companies in the country.
Last year, it was confirmed a Shannon subsidiary, GE Capital Aviation Services Ltd has placed an order for 40 Boeing 737s with a list price of nearly $4bn (€3bn). The figures for GE Capital Aviation Funding show the firm’s operating profits fell 24% from $791m to $602m.
The filings show that the firm’s income was boosted by a $30m dividend received from subsidiary, GE Capital Aviation Services Ltd. Total dividend income amounted to €45m. However, this was offset by interest payable of €23m and impairment losses of €52.5m.
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 the present level of activity will be sustained for the foreseeable future”.
The principal activity of the company is the provision of financing and lending to other related group companies in the aviation industry. The filings show its GE aviation subsidiaries are located in France, Sweden, Norway, Netherlands, Malaysia, Bermuda, India, Russia, Mexico, Brazil and the US.
The figures show revenues of $612m represents the provision of financing and lending services. The profits last year resulted in the company having accumulated profits of $6.07bn.
In total, the company had shareholder funds of $18.74bn that included a share premium of $12.65bn. The firm’s shareholder funds reduced from by $3.3bn from $21.47bn to $18.74m through the purchase of its own shares.