Thomas Lyons 
Apple’s Irish subsidiary, Apple Operations International Ltd (AOI), recorded a 2% increase in pre-tax profits to $69.3bn (€63.4bn) for the 12 months ending September 2022. This is equivalent to a daily pre-tax profit of $189.87m. The increase in pre-tax profits was driven by a 5.5% rise in revenues from $211.05bn to $222.75bn during the same period. AOI is registered at Apple’s Hollyhill campus in Cork and oversees most of the company’s non-US subsidiaries. It develops and manufactures a range of products, including the iPhone, iPad, and Mac computers. The group’s directors have stated that the majority of its net sales come from outside Ireland.
According to the new consolidated accounts, AOI paid dividends of $20.7bn to Apple Inc last year, down from $25.3bn in 2021. The accounts state that these dividends are fully subject to US tax. The company incurred a corporation tax charge of $11.08bn last year across several countries where Apple operates, excluding US-based taxes. This figure is slightly lower than the $11.57bn tax charge for 2021. The corporation tax paid in Ireland is not disclosed in the accounts, but a 12.5% corporate tax charge would have resulted in corporation taxes of $8.66bn. The filing does not state where the tax was paid, but it is likely that the majority was paid in Ireland, where the company is based.
Apple’s operation is crucial to the State’s corporation tax take. In 2021, the State received total corporation tax receipts of €22.6bn, which was €7.3bn ahead of the previous year’s total. The accounts refer to the successful appeals by Apple and the Irish Government against the European Commission’s decision six years ago that the iPhone maker owed Revenue €13.1bn in back taxes, plus interest of €1.2bn. In July 2020, Europe’s second-highest court ruled that the Government did not provide Apple with any State Aid. The accounts also refer to the European Commission appealing that decision to the European Court of Justice. A note attached to the accounts states that Apple may request approval from the Irish Minister for Finance “to reduce the recovery amount for certain taxes paid to other countries”. As of September 24, the adjusted recovery amount was €12.7bn, excluding interest. This amount, along with interest, is funded into escrow, where it will remain restricted from general use pending the conclusion of all legal proceedings.
AOI recorded post-tax profits of $58.22bn last year. The number of employees at AOI and its subsidiaries totaled 56,639, an increase of 4,076 from the 52,563 employed in September 2021. Approximately 6,000 of these employees are based in Ireland. Staff costs amounted to $6.33bn, including share-based compensation of $1.39bn. The company’s cost of sales was $126.29bn, resulting in a gross profit of $96.46bn. AOI’s selling, general and administrative expenses amounted to $11.38bn. The group’s research and development costs totaled $15.5bn, compared to $12.4bn in 2021. AOI’s shareholder funds amounted to $97.64bn at the end of September, compared to $58.77bn at the end of September 2021. The group’s cash funds increased from $16.8bn to $17.48bn.
In summary, Apple’s Irish subsidiary, AOI, recorded a 2% increase in pre-tax profits to $69.3bn (€63.4bn) for the 12 months ending September 2022. The company paid dividends of $20.7bn to Apple Inc last year, down from $25.3bn in 2021, and incurred a corporation tax charge of $11.08bn across several countries where Apple operates, excluding US-based taxes. The corporation tax paid in Ireland is not disclosed in the accounts, but it is likely that the majority was paid in Ireland, where the company is based. The adjusted recovery amount for certain taxes paid to other countries was €12.7bn as of September 24, and this amount, along with interest, is funded into escrow, where it will remain restricted from general use pending the conclusion of all legal proceedings. AOI’s shareholder funds amounted to $97.64bn at the end of September, compared to $58.77bn at the end of September 2021, and the group’s cash funds increased from $16.8bn to $17.48bn.
