Apple's main Irish unit incurs $25.2bn corporation tax charge 

The Apple plant at Hollyhill, Cork. Files show that $15.84bn of the corporation tax charge arose from the European Court of Justice decision to find against Apple in the State aid tax case. File Picture: Dan Linehan

The main Irish subsidiary of Apple last year incurred a $25.2bn (€23.2bn) corporation tax charge.

New accounts filed by Cork-based Apple Operations International Ltd (AOIL) show that $15.84bn of the corporation tax charge arose from the European Court of Justice's decision to find against Apple and the Government in the State aid tax case.

AOIL paid out $8.84bn in cash in corporation taxes for the 12 months to the end of September last.

Pre-tax profits at AOIL last year increased by 7%, from $71.07bn to $76.36bn, as revenues increased 1.5% — from $218.89bn to $222.3bn.

The company’s post-tax profits totalled $51.15bn following the $25.2bn corporation tax charge, down 18% from $62.28bn in the prior year.

A note concerning the European Court of Justice's decision stated that as a result, AOIL recorded a one time income tax charge of $14.8bn — which represents $15.8bn payable to Ireland via release of the escrow and a decrease in uncertain tax position of $1bn.

Net sales

AOIL 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. It manufactures and develops everything from the company’s iPhone and iPad products to Mac computers.

Sales outside Ireland representing a majority of the group's net sales.

The business last year paid dividends of $67.62bn to Apple Inc, down from $92.2bn in the prior year.

The accounts don’t disclose corporate tax paid in Ireland but state that a 12.5% corporate tax charge would have resulted in corporation taxes of $9.5bn.

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

Numbers employed at AOIL and subsidiaries last year totalled 55,827, with some 6,000 of those employees are based in Ireland.

Staff costs totalled $7bn, and that included share-based compensation of $1.73bn. The company’s cost of sales last year totalled $120.2bn resulting in a gross profit of $102bn. Research and development costs totalled $16.92bn.

AOIL’s shareholder funds at the end of September last amounted to $47.96bn. The group’s cash funds decreased marginally to $17.85bn.

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