Close the net on tax avoidance

Unite highlighted today (December 7) that the case for chancellor George Osborne “closing the net on corporate tax avoidance” is further reinforced with reports that Cadbury’s owner, Mondelez International, did not pay any UK corporation tax last year.

 
A Sunday Times investigation found that Mondelez was able to legally dodge “tens of millions of pounds” in tax since its controversial takeover of Cadbury five years ago.

 
Unite unsuccessfully campaigned against the takeover of Cadbury in 2010 by Kraft Foods that has now transmuted into Mondelez.

 
In 2014 alone, the company made a profit of ÂŁ149m.

 
“Nifty footwork by clever accountants meant that the treasury was denied millions of pounds in corporation tax that could have been spent on the NHS and other much-needed public services,” Unite regional officer Joe Clarke said.

 
“Once again, George Osborne is turning a blind eye to the accounting machinations of big powerful multi-nationals, but turning the screw on those struggling financially in the form of welfare cuts that may have been postponed in the recent comprehensive spending review, but will be coming down the track eventually,” he added.

 
“The case for a closing the net on the legal means for corporate tax avoidance is further reinforced by the Mondelez revelations,” Clarke went on to say.

 
“While the exchequer is denied its due from Mondelez, shareholders are feasting on dividend payments of £1.3 billion.”