Thursday, May 08, 2025

Apple from 1980: US and tax of American firms in Ireland

Martina Lyons watched by Minister Gene Fitzgerald and Steve Jobs at the Apple facility at Hollyhill in 1980. Picture: Irish Examiner

Martina Lyons was watched by Minister Gene Fitzgerald and Steve Jobs at the Apple facility at Hollyhill in 1980. Picture: Irish Examiner

In 1984, the Ford Motor Company's car assembly plant in Cork, Ireland, closed due to the lifting of import restrictions and increased international competition. This decision resulted in the loss of 800 jobs and the end of Ford's production in Ireland, which had begun in 1917.

Apple established its first international operations in Ireland in 1980, and a manufacturing plant in Cork, in the second city in the Republic of Ireland.

Apple in Ireland began in 1980 with a single manufacturing facility and 60 employees. Now the Irish payroll is about 6,000.

This move marked the company's first international manufacturing facility and played a significant role in Apple's global expansion.

Apple, first began operations at Hollyhill on the north side of the city in October 1980, just four years after the company was founded in California.

From 1956 to 1980, Ireland offered a zero tax rate to attract foreign companies, and eligible companies arriving in 1980 received tax holidays until 1990.

Eligible companies arriving in 1980 were given "tax holidays" until 1990. "Any multinational attracted into Ireland that was focusing on the export market paid 0 per cent corporation tax," said Barry O'Leary, a former chief executive of IDA Ireland (Industrial Development Authority).

The Irish Times has said "Accounts for Apple’s main Irish unit, then known as Apple Computer Inc Ltd, for 1989, the earliest year for which detailed accounts were filed, show exactly how effective the arrangement was. The subsidiary paid $500,000 in income tax on profits of $317 million, a rate of 0.2%.

In 1990, Apple’s tax holiday came to an end, and in that year the Irish operation’s tax rate hit 4%.


Some industry sources estimate that 650 Irish companies currently employ more than 100,000 people across all 50 states in the US. Ireland, despite its small size, is currently the ninth-largest source of foreign direct investment to the US, with a value of $240 billion.


Apple's first overseas project was a time of international turmoil

In 1979 the Arab oil-producing countries began the second embargo in 5 years. The Irish economy comment contracted and was 

In Ireland in 1979 a total of 1.47 million working days were lost due to industrial action, the highest amount since 1937. The UK was also in turmoil.

"The Winter of Discount" was a period of industrial unrest in Britain in the late 1970s."

The 1970s did not herald the end of emigration from Ireland, but rather a period of net inward migration. While emigration decreased significantly in the 1970s due to Ireland's economic development and entry into the European Economic Community, it later resurfaced in the 1980s as economic conditions worsened.

Gene Fitzgerald TD unveiling a plaque to officially open the new Apple Computer plant at Hollyhill in November 1980. Included in the picture is Steve Jobs, vice-chairman Apple, Mike Markkula, chairman, and Alec Wrafter, managing director Apple. Picture: Irish Examiner

Gene Fitzgerald TD unveiling a plaque to officially open the new Apple Computer plant at Hollyhill in November 1980. Included in the picture is Steve Jobs, vice-chairman Apple, Mike Markkula, chairman, and Alec Wrafter, managing director Apple. Picture: Irish Examiner

Over the years, the Cork campus has grown into a major hub for Apple, supporting various aspects of the business and employing thousands of people.

"Methodology: How an unprecedented investigation uncovered Ireland’s Tax Mirage"

80 companies control more than 90% of all declared intangible assets.

In based on research from the Democracy Challenged project at University College Dublin (UCD), funded by the European Research Council (ERC). The team is carrying out forensic financial investigations into how US multinationals use Ireland to house intellectual property (IP) and shift global profits.

Exclusive: Ireland’s $967 billion ‘Tax Mirage’

"Business Post Special Investigation finds just 80 firms account for 90 per cent of IP held here in sophisticated tax avoidance scheme The minister for finance was asked if government policies to attract IP and multinationals to Ireland had directly resulted in a major vulnerability building up in the economy and public finances."

Mirage?

GDP per capita April 2025: Ireland at $107.24 but is fake and Є30,000 is correct

It does appear that Ireland is among the countries with the highest per capita GDP in the world (excluding small countries). With Switzerland, Norway and Singapore.

Three US firms account for most Irish tax windfalls - Apple, Alphabet (Google), Microsoft

DUBLIN, April 30 (Reuters) - Foreign multinationals paid a record 88% of all Irish corporate tax last year, with the largest 10 firms accounting for 57% of surging receipts, according to data on Wednesday that highlighted the country's vulnerability to U.S. policy changes. 

A jump in corporate tax revenue from 4.6 billion euros ($5.24 billion) in 2014 to 28 billion euros last year, or 29% of all tax collected - even before an extra 11 billion euros of back taxes from Apple (AAPL.O), opens new tab is included - has transformed Ireland's public finances into the healthiest in Europe."

Apple in 2018: It was claimed that iPhones were being shipped from Dublin to China.  

This was the other way around.

"In 2018, Apple shipped iPhones from Ireland to China, which is part of a broader strategy where Apple's IP and R&D costs are shared globally, including in Ireland, to potentially benefit from lower taxes and favourable business conditions. 

Apple's retail operations and Apple Stores are managed separately from manufacturing and assembly, which is largely done in China. This setup allows Apple to minimize its tax burden by claiming the bulk of the profit is attributable to its U.S. headquarters or the Irish subsidiary."