William Gallagher
New filings from Apple's Irish head office show that the company's European operations earned $211.1 billion in revenue, of which it paid out $24.8 billion to its US parent.
Apple's counts as one of Ireland's biggest companies, because it funnels income from the company's subsidiaries across Europe. Traditionally, it has done so in order to benefit from Ireland's low tax rate, although that is now changing.
It's also advantageous for Apple to leave money overseas that it has earned from outside the US, rather than repatriating all of it. Consequently, despite an increase in revenue of 42.4% from $148.2 billion in 2020, to $211.1 billion in 2021, little of it has been sent back to Apple US.
Instead, according to the Irish Examiner, the Irish subsidiary has paid its US parent company $24.8 billion for the same period.
The accounts for a financial year ending September 25, 2021, show that Apple has provided for an income tax bill of $11.6 billion. Some $8.5 billion of that is listed as being for corporation tax, but the filings do not break down further into how much is to be paid in Ireland or the US.
Despite the more than 40% rise in revenue, the accounts show that profits fell from $70.3 billion in 2020, to $26 billion in 2021.
The accounts also show that the number of employees at Apple's subsidiaries that report to the Irish division, has rise from 51,255, to 52, 563. More than 6,000 of those work directly for Apple's Ireland operations, which recently added new offices at Horgan's Quay in Cork.
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Does anyone know if the stock buy-backs are undetaken in US or overseas? Might it make sense for non-US income to be used for buy-backs to avoid repatriation tax? Just pondering an area I don’t know too much about…