Apple NZ reports lower full year profit, defers taxes
Profit was $6.5 million for the year ended September 24, 2016 compared to $17.8 million a year earlier.
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Apple Sales New Zealand reported a lower annual profit on a higher cost of sales, despite spending less buying inventory from related companies.
Profit was $6.5 million for the year ended September 24, 2016 versus $17.8 million a year earlier.
Revenue rose 1.6% to $744 million. Of that, sales of goods rose to $732 million from $721 million the prior year while service fee income rose to $12.4 million from $11.5 million in the prior period.
The New Zealand division's cost of sales rose 3.9% to $729.2 million, in a year when purchases of stock from related parties fell 6.1% to $675.7 million.
Apple Sales New Zealand said it paid a total dividend of $28.4 million to its parent on June 16. There were no dividends declared in the prior financial year.
The local unit of the world's biggest company by market value faced a $3 million tax expense versus $8.9 million in the prior year. The accounts indicate that the initial tax expense was $9.3 million but there were $6.2 million in deferred taxes.
Notes to the accounts say there are certain transactions and computations for which the ultimate tax determination is subject to the agreement by the relevant tax authority and the company recognises liabilities for such transactions based on estimates of whether additional taxes will be due.
The carrying amount of its tax payables and deferred tax assets at September 24 were $9.3 million and $16.8 million respectively.
Apple is one of a number of high-profile multinational companies which have been criticised for minimising tax by sending profits through offshore subsidiaries.
Apple NZ's cashflow statement shows it paid $10 million in income taxes in the 2016 financial year, up from $6.4 million a year earlier.
(BusinessDesk)
Rebecca Howard
Wed, 01 Mar 2017
Wed, 01 Mar 2017
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Apple NZ reports lower full year profit, defers taxes
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