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Frances Ball 10 Oct 2019 12:56pm

Cadbury parent company slammed for low tax payments

With turnover of £1.7bn in the UK, Mondelez UK sent only £271,000 to HMRC last year

In 2018, the parent company of Cadbury had a pre-tax profit of £35m.

Mondelez UK sent £200m in dividends to its owner company Kraft Foods Schweiz Holdings in Switzerland – a country that has a tax system attractive to multinationals, although recent improvements in transparency have prompted the EU to remove it from a list of tax havens.

In its filing to Companies House, Mondelez points out the UK corporate tax rate has decreased since 2017, and is due to shrink again to 17% from 1 April 2020 under the Finance Act 2016.

In the financial year 2017 Mondelez UK, which is a subsidiary of US giant Mondelez International, paid no corporation tax in the UK.

Recent proposals by the OECD have outlined an overhaul of the way that multinational companies are taxed, in a way that reflects the realities of a global business lines.

Companies would be taxed on the sales they bring in in a given territory, even if they don’t have a physical presence there.

 

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