Apple Oz Banks $8bn In Sales, Pays $182m Tax
Persistent reports that Apple Australia has not been doing well have been finally put to rest with this week’s publication of Apple’s report for the financial year ended September 30, 2017.
Apple Oz reported revenue of more than $8 billion and pre-tax profit of A$255 million for the 12 months, almost double the $132 million it posted in the previous financial year. And had it not been for catching up with short tax payments in previous years, Apple Oz’s net profit for the latest year would have been well over that.
The Aussie subsidiary paid $182 million in income tax in the latest year, up 42pc on the $128 million it paid for the year to September 2016. The company’s net profit after tax was put at $72 million.
It would have been quite a bit more if Apple wasn’t still ante-ing up for under-payment of Aussie tax in previous years when – like a number of other US-based companies – it had sought to take advantage of its previous arrangements with Apple Ireland, where tax is very low.
The local company now appears to concede the Australian Tax Office’s position that tax must be paid in the country where the profits are earned.
The $182 million tax Apple paid in its latest year included $58 million for “under-provision in prior years” – ie, when it was paying the low Irish tax. After those payments and several other matters are taken into account, Apple’s net profit would have been much bigger.
Every other Australian computer flogger would cheerfully kill to have such figures.