Apple's Irish subsidiary increased its pre-tax profits by 2 per cent to $69.3 billion, an increase of 2 per cent from the year before.

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For the 12 months to the end of September 24th, 2022, the pre-tax profits recorded by Apple Operations International (AOI) Ltd and subsidiaries based in Cork equated to a daily pre-tax profit of $189.87 million for its business subsidiary.

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In addition to the increase in pre-tax profit, the business reported an increase in revenue for the 12-month period from $211.05 billion to $222.75 billion, which represents a growth of $11.69 billion or 5.5%.

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The AOI is based at Apple's Holyhill Campus in Cork, Ireland. It covers most of Apple's subsidiaries outside the United States registered with it. There are a number of groups within the company that manufacture and develop everything from Apple's iPhone and iPad products to the company's Mac computers, so the company is a holding company for a number of Apple subsidiaries.

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There were a number of directors on hand during the meeting, and they stated that the group operates internationally, with the majority of its net sales originating outside of Ireland.

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Taking a closer look at the new consolidated accounts, the company paid $20.7 billion in dividends last year to Apple Inc, a slight drop from the $25.3 billion paid in dividends in 2021. There is a note in the accounts that states the dividends are fully taxed in the United States.

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Last year, AOI incurred a corporate tax charge of $11.08 billion across a number of countries in which they operate, which excludes US-based taxes incurred at their US-based headquarters. Tax liabilities for the year 2022 were down marginally on those for the year 2021 when $11.57 billion were owed.

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Despite paying corporation taxes of $7.69 billion, the total provision for corporation taxes of $11.08 billion also includes $3.29 billion that has been deferred to the future as a result of deferred taxation.

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In the accounts, no mention is made of the corporate tax paid in Ireland, but it is stated in the accounts that an additional 12.5% corporate tax charge would have resulted in an additional $8.66 billion in corporate taxes.

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There is no indication in the filing of where the tax was paid, but it is likely that the lion's share of the tax was paid in Ireland, where the company is headquartered.

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Reliance

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Apple's operation is so important to the State's corporation tax takings that, last year, the State's Exchequer received a total of $24.6 billion in corporation tax receipts, which is a substantial increase of 48%, or $7.9 billion, over the total obtained the previous year.

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Among the accounting accounts were references to Apple's successful appeals against the European Commission's decision six years ago that the tech firm owed revenue of $14.2 billion in back taxes, plus interest of $1.3 billion, as well as the successful appeals by the government against the decision.

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Apple's accounts also refer to the European Commission appealing that decision to the European Court of Justice in July 2020 after the European Court of Justice ruled that Apple did not receive any State aid from the Government.

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In a note attached to the accounts, it was stated that Apple may apply to Minister for Finance Michael McGrath for approval "to lower the amount of taxes recovered for certain taxes paid to other countries".

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In addition to this, it was noted that as of September 24th last year, the adjusted recovery amount was $13.8 billion, excluding interest, as of September 24th last year.

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Regardless of the outcome of all legal proceedings, the $13.8 billion-plus interest has been funded into escrow where it remains restricted to general use pending the conclusion of all legal proceedings.

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Additionally, it is stated in the filing that AOI recorded a post-tax profit of $58.22 billion last year.

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There were 56,639 employees at AOI and its subsidiaries in September 2021, which is a 4,076 increase in the number of employees noted in the September 2021 report. Irish employees make up about 6% of the total number of employees in the company.

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There were $6.33 billion in staff costs, which included $1.39 billion in share-based compensation, which amounted to $6.33 billion.

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A total of $126.29 billion was spent on the company's cost of sales, resulting in a gross profit of $96.46 billion at the end of the year.

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There was an increase in AOI's selling, general, and administrative expenses for the year totaling $11.38 billion, up from $12.4 billion in 2021, while R&D spending rose from $12.4 billion to $15.5 billion, up from $12.4 billion in 2021.

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At the end of last September, AOI had $97.64 billion in shareholder funds, an increase of 58.77 billion when compared to $58.77 billion a year earlier, while the firm's cash funds increased from $16.8 billion to $17.48 billion over the same period.