Yahoo! Ireland posts profits of €3.4 million
Tech company paid €500,000 tax bill
Yahoo Ireland has recorded pre-tax profits of almost €3.4 million for 2012. Photograph: Alan Betson
Yahoo Ireland has recorded pre-tax profits of almost €3.4 million for 2012, according to newly published financial results. Gross profits in 2011 at the company, which provides services to other Yahoo companies, amounted to some €24 million although €23.6 million of that was subsumed by administrative costs.
That compares to similar expenses of €19.8 million last year, and a gross profit of almost €23.5 million.
“The profit for the year after taxation was €2,872,665 (2011: €2,243,148). A dividend of €5,605,068 was paid to its parent company, Yahoo Netherland BV during 2012,” its accounts published today said.
“Yahoo Ireland Services Limited is the service company in Ireland providing services to Yahoo group entities.
“The services provided are media services, shared service support and server hosting. The company purchased this business from another Yahoo entity, Overture Search Services Ireland Ltd, on 31 October 2008 for €12.8 million.”
Turnover in 2012 was €43.7 million, increasing from €41.3 million the previous year. Last year it has a deferred tax credit amounting to €280,286.
Yahoo Ireland, is considered to be an important part of Dublin’s growing tech sector, and announced expansion plans into the country earlier this year, aiming to create a further 200 jobs over a 12 month period.
The growth related specifically to customer support, technology, operations, human resources and finance at its Dublin office which provides customer care, technical and operational support, as well as finance-related services across Europe, the Middle Eastern and Africa.
However, it is part of an industry whose overall tax bills have become an increasing point of focus for critical governments.
A US report published last May revealed that its companies paid an average tax rate of just 8 per cent on profits in Ireland, less than the 12.5 per cent blanket corporate rate.
Companies are facilitated in this through the use of tax credits, which they can access through various avenues, including research and development work.
The report showed that while a small economy generally, Ireland was the fourth largest source of revenue repatriated to the US by its companies in 2008.