Cadbury Owner Did Not Pay Any UK Tax
Cadbury may have made a lot in revenue recently. But thanks to its debt, its parent company, Mondelez International, reportedly did not to pay any corporate tax in Britain at all.Advertisement
According to a report from The Sunday Times, Cadbury reported more than £2 billion in revenue last year. However, its tax bills in Britain are being cleared due to interest payments on an unsecured £8.2 billion debt listed as a bond on the Channel Islands stock exchange. The said debt is now being utilized by the company as a way to offset losses against tax. Because of this, Mondelez managed to report £8 billion ($12 billion) in gross profits worldwide last year.
A spokesperson from Mondelez told The Guardian, “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.” Moreover, the company said it made hefty investments in the UK with over £200 million invested in both manufacturing and R&D in the country. The company currently employs 4,500 employees in the UK.
Moreover, Mondelez said that it recently made an investment amounting to £75 million in four new lines for its Bournville facility. The company also said that research shows that the UK economy makes £1.42 for every £1 that the Cadbury maker spends in the UK. From 2013 to 2014, Mondelez reportedly made a contribution of £1.86 billion to the UK economy.