Saturday 18 November 2017

Aircraft-leasing industry pays out €52m in corporation tax

Provisional figures provided by Minister for Finance Michael Noonan show that the total estimated tax paid last year by the industry totalled €128m. Photo: Douglas O’Connor
Provisional figures provided by Minister for Finance Michael Noonan show that the total estimated tax paid last year by the industry totalled €128m. Photo: Douglas O’Connor

Gordon Deegan

Ireland's multi-billion euro aircraft-leasing industry paid corporation tax of €52m last year.

Provisional figures provided by Minister for Finance Michael Noonan show that the total estimated tax paid last year by the industry totalled €128m. Some €95m was paid in PAYE/USC by the industry, with net Vat repayments of €19m.

The confirmation by Noonan follows a recent Central Bank study which showed industry revenues increased by €2.4bn from €9.4bn in 2014 to €11.8bn in 2015. Ireland is home to nine of the 10 largest aircraft-leasing firms in the world, including SMBC Aviation Capital, Pembroke Capital, Awas Capital, GECAS and Avolon.

There are more than 4,000 aircraft under Irish management here and together Irish-based lessors account for more than $120bn (€113.4bn) in aircraft assets.

The €52m is a 52pc increase on the €34m paid in corporation tax in 2014. In a written response to Fianna Fail's Michael McGrath, Noonan confirmed that the corporation tax take over the past five years was €445m.

Key directors and executives of SMBC Aviation Capital, the Dublin-based aircraft-leasing business, received long-term benefits worth $18.9m in the year to the end of March last.

This brought total compensation for this group of employees to $28.9m, more than double the $12.4m they received in the previous financial year.

During the same five-year period, the tax receipts from the industry were hit by the State making net Vat repayments to aircraft leasing firms totalling €133m.

Sunday Indo Business

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