Tech Giant Minimizes Tax Bill Through Employee Stock Options

  • Apple’s UK retail division paid £796k in tax last year
  • Pre-tax profits of £38.2m on sales of £971.5m
  • £30.3m share-based payout to employees led to reduced tax bill
  • Tax deductible expense due to increased share price
  • Richard Murphy believes Apple claimed full tax relief without reflecting related costs in accounts

Apple’s UK retail division paid only £796,000 in tax last year after utilizing a share-based payout scheme that led to a £30.3 million deduction from its tax bill. The tech giant made pre-tax profits of £38.2 million on sales of £971.5 million during the fiscal year ending September 25th. According to Richard Murphy, professor of accounting at Sheffield University’s management school, Apple may have claimed the full available tax relief without considering all related costs in its accounts. An Apple spokesperson stated that the company is aware of the importance of taxes and supports over 450,000 jobs across the UK.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Apple’s tax situation in the UK, including pre-tax profits, sales figures, and employee payouts. It also includes a statement from an Apple spokesperson addressing the company’s stance on taxes and job creation. However, it lacks some context or explanation of how the share-based payout scheme works, which could be considered as a minor digression.
Noise Level: 3
Noise Justification: The article provides relevant information about Apple’s tax strategy and quotes from a knowledgeable source, but it could benefit from more detailed analysis of the implications of this strategy on society and the economy.
Financial Relevance: Yes
Financial Markets Impacted: Apple’s UK retail division and its employees
Financial Rating Justification: The article discusses Apple’s tax payments and employee payouts, which are financial topics related to the company’s operations and impacting its employees.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the text.

Reported publicly: www.retailsector.co.uk