Apple tax issue likely to be raised after profit revelation

Imran Miah our consultant managing the role
Author: Imran Miah

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.

11/04/16
posts

Related articles

Market Insight Report | Investor- led CFO Executive search
Market Insight Report | Investor- led CFO Executive search

Teaser

Executive Search

Content Type

Market Insight Reports

17/10/24

Summary

There has been a dip in hiring activity for roles below CFO level, however, sizable, international corporations still present unique opportunities for skilled finance directors, often re

Teaser

Download our Executive search Market Insight & Salary Report

Read full article
Tracey Alper

by

Tracey Alper

Tracey Alper

by

Tracey Alper

Market Insight & Salary Report | Legal UK WIDE
Market Insight & Salary Report | Legal UK WIDE

Teaser

Legal

Content Type

Market Insight Reports

17/10/24

Summary

The ongoing trends in the legal hiring sector indicate a shift in candidate priorities. In-house candidates are now focusing more on base salary rather than bonuses, and Long-Term Incent

Teaser

Download our Legal UK wide Market Insight & Salary Report

Read full article
Angus Denny

by

Angus Denny

Angus Denny

by

Angus Denny

Market Insight & Salary Report | Netherlands
Market Insight & Salary Report | Netherlands

Teaser

General

Content Type

Market Insight Reports

17/10/24

Summary

Salary increases are now more consistent, with expected rises ranging from 5-10%, depending on the tenure of their previous role. For instance, a candidate may achieve a larger increase

Teaser

Download our Netherlands Market Insight & Salary Report

Read full article
Mark Korevaar

by

Mark Korevaar

Mark Korevaar

by

Mark Korevaar

jobs

Related jobs

Interim Senior International Tax Manager

Salary:

£90,000 - £1,000,000 per annum

Location:

England

Industry

Insurance

Qualification

None specified

Market

Financial Services

Salary

£250,000 +

Job Discipline

Tax

Contract Type:

Contract

Description

We are recruiting for an interim Senior International Tax Manager to join an international insurance broker.

Reference

BBBH182253

Expiry Date

01/01/01

Deem NaPattaloong Find out more
Chief Financial Officer

Salary:

£120,000 - £135,000 per annum + Additional Benefits Package

Location:

Widnes, Cheshire

Industry

Consumer & Retail

Qualification

Fully qualified

Market

Commerce & Industry

Salary

£125,000 - £175,000

Job Discipline

Qualified Finance

Contract Type:

Permanent

Description

PE backed on-line retail organisation looking for a CFO based near Widnes paying up to £135,000 with bonus.

Reference

BBBH182213

Expiry Date

01/01/01

Nathan  Jones

Author

Nathan Jones
Find out more
Financial Planning and Analysis Manager

Salary:

£70,000 - £78,000 per annum + £6,600 car allowance and benefits

Location:

Oldham, Greater Manchester

Industry

Manufacturing

Qualification

Fully qualified

Market

Commerce & Industry

Salary

£70,000 - £80,000

Job Discipline

Qualified Finance

Contract Type:

Permanent

Description

FPA Manager role working for a well-established international business paying up to £78,000 + car allowance based in Oldham.

Reference

BBBH181733

Expiry Date

01/01/01

Nathan  Jones

Author

Nathan Jones
Find out more
Part time Finance Assistant

Salary:

£25,000 - £28,000 per annum

Location:

Leeds, West Yorkshire

Industry

Business Services

Qualification

None specified

Market

Commerce & Industry

Salary

£25,000 - £30,000

Job Discipline

Part Qualified & Transactional Finance

Contract Type:

Permanent

Description

Marks Sattin are currently recruiting a temporary, part time Finance Assistant on behalf of a well established business, based in East Leeds.

Reference

182260

Expiry Date

01/01/01

Yasmin Clough

Author

Yasmin Clough
Find out more
Financial Controller

Salary:

€64,000 - €83,000 per annum

Location:

Abcoude, Utrecht

Industry

Pharmaceuticals & Life Sciences

Qualification

Fully qualified

Market

Commerce & Industry

Salary

£70,000 - £80,000

Job Discipline

Qualified Finance

Contract Type:

Permanent

Description

Financial Controller

Reference

BBBH182269

Expiry Date

01/01/01

Elisa Beckschebe Find out more
Financial Accountant

Salary:

£350 - £375 per day

Location:

City of London, London

Industry

Property and Infrastructure

Qualification

Fully qualified

Market

Commerce & Industry

Salary

£350 - £450

Job Discipline

Newly Qualified Finance

Contract Type:

Contract

Description

Financial Accountant - 6 month contract - Listed Telecommunications

Reference

BBBH182264

Expiry Date

01/01/01

Maria Gonzalez Find out more
Senior Data Engineer

Salary:

£50,000 - £60,000 per annum

Location:

England

Industry

Technology

Qualification

None specified

Market

Commerce & Industry

Salary

£60,000 - £70,000

Job Discipline

Data Protection & Privacy

Contract Type:

Permanent

Description

Senior Data Engineer

Reference

BBBH182249

Expiry Date

01/01/01

Ghazal Mayahi

Author

Ghazal Mayahi
Find out more
Treasury Risk & ALM Consultant - 6m Contract

Salary:

£550 - £600 per day

Location:

London

Industry

Investment Banking & Capital Markets

Qualification

None specified

Market

Financial Services

Salary

£350 - £450

Job Discipline

Treasury

Contract Type:

Contract

Description

Liquidity Risk & ALM Analyst (6-Month Contract) A growing London-based Securities Broking Firm | £550-600/day via umbrella| Hybrid Flexible Working

Reference

BBBH182263

Expiry Date

01/01/01

Paul Roche

Author

Paul Roche
Paul Roche

Author

Paul Roche
Find out more
Temporary Finance Assistant

Salary:

£25,000 - £28,000 per annum

Location:

Leeds, West Yorkshire

Industry

Real Estate

Qualification

None specified

Market

Commerce & Industry

Salary

£25,000 - £30,000

Job Discipline

Part Qualified & Transactional Finance

Contract Type:

Contract

Description

Marks Sattin are currently recruiting a temporary Finance Assistant on behalf of a business based in East Leeds.

Reference

BBBH182260

Expiry Date

01/01/01

Yasmin Clough

Author

Yasmin Clough
Find out more
Private Client Tax Manager

Salary:

£50,000 - £55,000 per annum

Location:

Leeds, West Yorkshire

Industry

Business Services

Qualification

None specified

Market

Financial Services

Salary

£50,000 - £60,000

Job Discipline

Tax

Contract Type:

Permanent

Description

.

Reference

BBBH182256

Expiry Date

01/01/01

Aleksandra  Taranovskaja Find out more
View all jobs