Apple tax issue likely to be raised after profit revelation
Apple's tax affairs in Ireland may come under greater scrutiny after it reported the highest quarterly profit in corporate history.
The latest results reported by tech company Apple have caused a sensation, with the multinational revealing the highest quarterly profit figure in corporate history.
However, those working for tax firms in Ireland may look on the matter somewhat differently, not least as the company is notorious for manipulating the system to ensure that its profits stay high without much tax being paid in the countries where it is earning huge sums in revenue.
Apple's revenues for the third quarter of 2014 were $74.6 billion (€64.6 billion), from which it drew $18 billion in pre-tax profits. The success of its new iPhone6 was the main cause of its surge in income, with 74.4 million sold in the period.
Although the highest increase in sales was in China - up 70 per cent - the company still enjoyed a jump of 23 per cent in the US and 20 per cent in Europe.
That should, in theory, translate into more tax revenues for governments. However, the transfer of revenues through three Ireland-based subsidiaries to take advantage of the 'double Irish' loophole has ensured this will not be the case.
With the government planning to close this loophole under international pressure, Apple will need to do something different. The question is what. Will it decide that, as it is now turning in levels of profits no company in history has emulated, it should have no qualms about paying its fair share? The alternative is that it tries to find another way to beat the system, in Ireland or elsewhere.
Tax company workers in Ireland may be braced for the latter course of action, not least because even the goodwill shown to Apple by those who cannot wait to get their hands on each new device it produces may be tested by the size of the tax bill increases if the company plays ball. After all, a huge year-on-year jump will enable critics to seize on the figure as evidence of just how duplicitous and underhand the company has been.
Equally, however, Ireland's tax authorities may come under increased scrutiny if, once the double Irish loophole is abolished, Apple is still able to find a way to play the system and keep its tax bills low.
Signup to receive the latest discipline specific articles
Related articles
Teaser
GovernanceContent Type
Fintech
18/04/24
Summary
The role of risk and compliance in financial services As a sizeable, growing portion of the financial services sector, risk and compliance play a vital role in ensuring that firms conduct busine
by
David Clamp
Teaser
Executive SearchContent Type
General
18/04/24
Summary
Private equity (PE) is a growing industry that has always attracted ambitious top talent due to its high risk/high gain capital investment. Pre-covid, we saw the global private equity industry b
by
Tracey Alper
Teaser
Commerce & IndustryContent Type
General
18/04/24
Summary
What is financial contracting? Financial contracting refers to the practice of hiring finance professionals on a contractual basis to fulfil specific roles or projects within an orga
by
Kelvin Murphy
Related jobs
Salary:
£28,000 - £31,000 per annum
Location:
Leeds, West Yorkshire
Industry
Business Services
Qualification
None specified
Market
Commerce & Industry
Salary
£30,000 - £35,000
Job Discipline
Part Qualified & Transactional Finance
Contract Type:
Permanent
Description
Credit Controller - Leeds - Up to £30k!
Reference
BBBH178529
Expiry Date
01/01/01
Author
Cameron WalshAuthor
Cameron WalshSalary:
£70,000 - £90,000 per annum
Location:
London
Industry
Investment Banking & Capital Markets
Qualification
Fully qualified
Market
Financial Services
Salary
£80,000 - £100,000
Job Discipline
Legal
Contract Type:
Permanent
Description
Legal Counsel - (Capital Markets & Mortgages) London (Hybrid) £70,000 - £90,000 base p/a
Reference
BBBH180118
Expiry Date
01/01/01
Author
Maximillian SombartAuthor
Maximillian SombartSalary:
£35,000 - £55,000 per annum
Location:
Grimsby, Lincolnshire
Industry
Manufacturing
Qualification
None specified
Market
Financial Services
Salary
£50,000 - £60,000
Job Discipline
Part Qualified & Transactional Finance
Contract Type:
Permanent
Description
Our Grimsby based food manufacturing client is looking for someone experienced in product costing to join them as a Costing Manager.
Reference
BBBH179883
Expiry Date
01/01/01
Author
Dean FollandAuthor
Dean FollandSalary:
£110,000 - £130,000 per annum
Location:
London
Industry
FinTech
Qualification
Fully qualified
Market
Financial Services
Salary
£125,000 - £175,000
Job Discipline
Legal
Contract Type:
Permanent
Description
Commercial Legal Counsel - Fintech (3-7PQE) London (Hybrid / Remote) £110-130k base p/a
Reference
BBBH180111
Expiry Date
01/01/01
Author
Maximillian SombartAuthor
Maximillian SombartSalary:
Negotiable
Location:
Chorley, Lancashire
Industry
Consumer & Retail
Qualification
Fully qualified
Market
Commerce & Industry
Salary
£50,000 - £60,000
Job Discipline
Qualified Finance
Contract Type:
Permanent
Description
Finance Manager (Management Accounts) - 40% home working
Reference
BBBH180107
Expiry Date
01/01/01
Author
Laura HalloranAuthor
Laura HalloranSalary:
£22 - £25 per hour
Location:
Manchester, Greater Manchester
Industry
Healthcare
Qualification
Part qualified
Market
Commerce & Industry
Salary
£150 - £250
Job Discipline
Part Qualified & Transactional Finance
Contract Type:
Contract
Description
Senior Accountant | Manchester | Up to £25.00 per hour | 3 month contract | Hybrid
Reference
BBBH180106
Expiry Date
01/01/01
Author
Jamie MillerAuthor
Jamie MillerSalary:
Up to £41,000 per annum
Location:
Warrington, Cheshire
Industry
Business Services
Qualification
Part qualified
Market
Professional Services
Salary
£40,000 - £50,000
Job Discipline
Part Qualified & Transactional Finance
Contract Type:
Contract
Description
Management Accountant | Warrington - Hybrid | 9-12 month Contract | £41,000
Reference
BBBH180018
Expiry Date
01/01/01
Author
Evie CoatesAuthor
Evie CoatesSalary:
£27,000 - £32,000 per annum
Location:
City of London, London
Industry
Business Services
Qualification
None specified
Market
Commerce & Industry
Salary
£30,000 - £35,000
Job Discipline
Part Qualified & Transactional Finance
Contract Type:
Contract
Description
11 month temporary contract for an Accounts Receivable Assistant with the chance to go permanent at a business services company based
Reference
BBBH180105
Expiry Date
01/01/01
Author
Chelsea MillsAuthor
Chelsea MillsSalary:
€60,000 - €70,000 per annum
Location:
Dublin South, Dublin
Industry
Consumer & Retail
Qualification
Fully qualified
Market
Commerce & Industry
Salary
£60,000 - £70,000
Job Discipline
Qualified Finance
Contract Type:
Contract
Description
FP&A Manager - 12 month contract with further opportunities Fantastic client in telecommunications/retail industry. Opportunity to build experience in FP&A as well as Business Partnering.
Reference
BBBH180100
Expiry Date
01/01/01
Author
Sarah FallonAuthor
Sarah FallonSalary:
£60,000 - £70,000 per annum
Location:
Bristol
Industry
Transport & Logistics
Qualification
Fully qualified
Market
Commerce & Industry
Salary
£70,000 - £80,000
Job Discipline
Qualified Finance
Contract Type:
Permanent
Description
Commercial finance - Financial Analysis - Business Partnering... this has it all!
Reference
BBBH180060
Expiry Date
01/01/01
Author
Craig KilminsterAuthor
Craig Kilminster