Manufacturing & Supply Chain

Billion dollar aircraft leasing industry paid €23m in corporation tax in 2014

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Billion dollar aircraft leasing industry paid €23m in corporation tax in 2014

October 22
10:32 2015
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aircraft leasing

Aircraft leasing is a multi-billion euro industry that employs 2000 people in Ireland

Aircraft leasing is a multi-billion euro industry yet it paid €23m in Irish corporation tax last year.

Ireland is home to nine of the 10 largest leasing firms. The top five are SMBC, Pembroke Capital, Awas Capital, GECAS and Avolon. These companies made aggregate pre-tax profits of $650m (€572.9m) in 2014 generated from revenues of $3.25bn

According to figures provided by Minister for Finance Michael Noonan confirmed that despite these 2014 profits they paid  €23m in corporation tax.

SMBC Aviation Capital alone owns and manages 417 aircraft valued at over $15bn which it leases to over 40 countries, while the book value of Pembroke Capital’s aircraft portfolio was worth €1.32bn at the end of last year.

Mr Noonan confirmed the corporation tax take over the past five years from the aircraft leasing industry is €123m.

During the five years, the tax receipts from the industry were hit by the State making net Vat repayments to aircraft leasing firms of €83m, including €15m in net Vat repayments last year.

The industry employs 1,000 people directly and 2,000 staff indirectly.

The State estimates that the aircraft leasing companies’ spend on Irish professional services and infrastructure over €135m a year.

At board level at the top firms, the rewards are enormous with one airline executive, chief executive of Avolon Domhnal Slattery getting a $2.6m bonus last year and average pay at the top firms’ boards can run from $300,000 to a $1m a year.

The high pay in the industry is reflected in the employers’ PAYE payments last year of €55m.

The total amount received in tax from aircraft leasing firms last year was €63m taking into account the €15m in Vat repaid to the firms.

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