Owner of Cadbury's pays no UK corporation tax
An investigation found that Modelez have been wiping out Cadbury’s bills, thanks to their use of interest payments on an unsecured debt, which they just so happened to list as a bond on the Channel Islands’ stock exchange. And lo, the interest forked out on the loan can be offset as a loss against gains made elsewhere.
Of course, there's nothing illegal about this, but consumers will be unhappy at the news that Mondelez aren't paying any UK corporation tax, despite Cadbury UK making profits of £96.5m in 2014 and £83.6m in 2013.
With Amazon, Starbucks, and a host of other companies being yelled at over similar situations, this is a chunk of bad PR for Cadbury.
Margaret Hodge, chairwoman of the Commons all-party group on responsible tax, said: “Multinationals like this are deliberately exporting their profits with artificial company structures to avoid tax. The founders of Cadbury who set it up as an ethical company will be turning in their graves.”
A Mondelez spokesperson said: “In common with all global businesses, we pay corporation tax based on the laws of the countries in which we operate. We comply with all applicable tax legislation in the UK, and on a global basis we pay hundreds of millions of dollars in corporate income tax annually. Since 2010 we are proud to have invested over £200m into both UK-based manufacturing and R&D supporting our 4,500 employees in the UK."
"Importantly, independent academic research has also shown that as a business we are worth over £1bn to the wider UK economy, illustrating our impact reaches far beyond the factory gates."