Apple receives 23.5 billion euros in dividends from its Irish subsidiary

Apple’s main Irish company paid $24.8 billion (23.5 billion euros) in dividends to its parent company in the United States last year, according to recently filed accounts.

Apple Operations International (AOI), based in Hollyhill in Cork, is the holding company for nearly all of the tech giant’s non-US subsidiaries.

The accounts filed this week in the Companies Registry relate to the financial year ended September 25, 2021.

Apple has forecast an income tax bill of $11.6 billion, including $8.5 billion in corporate tax. However, the accounts do not detail the amount of corporation tax paid in Ireland.

The accounts show that the dividend paid for 2021 is down significantly from the $81.5 billion in dividends paid for 2020. The accounts indicate that the dividends are subject to US tax.

AOI said revenue jumped to $211.1 billion last year, a 42.4% increase from $148.2 billion in sales the previous year.

The number of employees in AOI subsidiaries has also increased from 51,255 to 52,563. More than 6,000 of that number are based in Cork at Apple’s three sites in Hollyhill, Lapp’s Quay and the new Horgan’s Quay.

The company’s total payroll costs came in at $5.8 billion, with the company’s salary, pension and stock compensation bill all rising.

According to the statement, the company’s pre-tax profits reached $67.6 billion, more than double the $33.8 billion recorded the previous year.

The lengthy statement of accounts outlines a range of risks that could impact Apple’s business, including the Covid-19 pandemic which has already caused significant disruption. Apple said they were the subject of several antitrust investigations in various countries and said it was under investigation in Europe regarding the terms and conditions of its app store and said that any Adverse discovery could result in significant fines.

In 2016, the European Commission ordered Ireland to recover state aid granted to Apple over an 11-year period. The amount of the recovery was 13.1 billion euros plus interest of 1.2 billion euros. Apple and the Irish State appealed this decision to the General Court of the EU, which overturned the decision. However, the Commission has appealed this decision and a final decision on the case is awaited.

The €14.3 billion fund has been placed in an escrow account until this decision is made. The account’s rules mean that Apple can pay certain taxes due in other countries from the fund and accounts released this week show the fund’s value excluding interest fell to 12.7 billion euros as of September 25 from Last year.

Along with major financial operations from Hollyhill, Apple also provides manufacturing, logistics, financing, sales and customer support services from Cork. Last month, the company opened a new engineering and testing facility on its campus, a significant addition to its operations in Ireland. The facility will test and analyze Apple products for all of Europe. It is only the third such site in the world operated by the company.

Lance B. Holton