Apple’s major Irish unit paid €7.7 billion in corporation tax last year, but after claiming over $69 billion in earnings, handed out nearly triple that amount in dividends to its California parent firm.
The Irish branch made the equivalent of over $190 million each day for the year to September, according to the most recent financial reports for the business, which is facing legal issues over its tax arrangements in Ireland.
Apple Operations International, based in Cork and serving as the parent company for the majority of Apple’s foreign subsidiaries, reported a 2% increase in profits and an increase in annual revenues of $11.7 billion to $223 billion.
For the fiscal year, the company paid corporation tax of €7.7 billion. It gave Apple Inc. dividends of $20.7 billion during that time. According to its accounts, US taxes are paid in full on the dividends.
These taxes, which total 11% of profits, are not yet known to have gone to which governments. Ireland has a 12.5% corporate tax, which would have added $8.7 billion to the tab.
Apple Operations International paid a total tax bill of $11bn for the time period, including deferred tax charges.
Apple has come under fire for its tax policies in Ireland, where it has operated since 1980. About 56,600 people work for Apple Operations International and its affiliates, 6,000 of them are situated in Ireland.
The European Commission ordered the iPhone maker to pay a record-breaking €13 billion in back taxes to Ireland in 2020, claiming that between 2003 and 2014, it had benefited from a preferential tax arrangement that amounted to unlawful state aid. According to the commission, the agreement permitted Apple to pay a maximum tax rate of just 1%, and as little as 0.005% in 2014.
As part of the EU’s efforts to crack down on tax dodging, Apple disputed the ruling. Later, a Luxembourgian court determined that the commission had not provided sufficient evidence to establish that Apple had benefited from the allegedly illicit arrangement, and it did not find Apple liable for back taxes owed to the Irish government.
The European Commission is still pursuing an appeal against the decision of the EU court. Apple’s representative declined to comment.
(Adapted from FlipBoard.com)
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