Owner of Cadbury's pays no UK corporation tax

cadbury The owner of Cadbury - Mondelez - are going to be dragged over the reports that they haven't paid any UK corporation tax last year.

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."


  • Jaffacake
    All the companies mentioned in this article have followed the law of land re: taxes. If the government can't craft tax laws without gaping loopholes, they should fire some existing lawyers and hire new ones.
  • Alexis
    Running a business with an £8bn debt? Running an insolvent company doesn't comply with UK law for starters. "“Importantly, independent academic research has also shown that as a business we are worth" That's nice. If only there was a tiebreaker question on the taxman's form. Explain why you should not pay any tax in 50 words or less..."
  • mark w.
    ...I wish these article could being proof read before they are go live.
  • Mr C.
    Just because a company has debt doesn't make it insolvent. If it is able to pay its debt as and when they fall due then it is solvent - there might be £8bn of debt (I don't know if that's true, but I'll take it at face value) but as long as it is repaying it as and when the repayments are due then there is no issue. They don't need a tiebreaker on the taxman's form as they comply with the rules. The problem with the loopholes is that the lawyers who draft the laws for the government are the ones who then advise corporates on the interpretation and application of them. I would have thought that is something of a conflict of interests, but there you go.
  • Teddy E.
    mark w, you should be dragged over the reports for making that comment.

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