Cadbury avoids paying UK corporation tax despite £48million profit and legally avoided ‘£10m bill’
The chocolate giant avoided paying £10million bill last year
CHOC giant CADBURY paid zero corporation tax in the UK last year – despite a £48million profit.
The iconic brand, now owned by US firm MONDELEZ, legally avoided a potential £10million bill last year.
Mondelez, formerly KRAFT, controversially took over Cadbury in 2010.
It has moved production of some key products, including one Dairy Milk bar, abroad and cut hundreds of UK jobs.
Accounts out this week show turnover at Cadbury UK, in Bournville, Birmingham, was £122.6million.
Its net assets over the year grew to £330.4million, up from £282.6million.
But a series of accounting moves, all legitimate, means its UK tax due this year was minus £48,000. It called it an adjustment after previous overpayments.
Cadbury, maker of Flake, Crunchie, Wispa and Boost bars, used it to drop its foreign tax bill from £2.902million to £2.854million.
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The TaxPayers’ Alliance said: “It highlights our complex, confusing tax code.”
Mondelez insisted: “We comply with all applicable tax legislation in the UK.”
SAMSUNG LOSSES DOUBLE
SAMSUNG’S “exploding” smartphone will cost it at least £4.4billion — more than twice what it forecast on Wednesday.
The South Korean tech giant first said withdrawing its flagship Galaxy Note 7 would hit profits in its latest three-month trading period by £1.9billion. But yesterday it admitted it expects to lose another £2.5billion in the next quarter too.
This does not include the hits to its share price and reputation.
Samsung says it has enough cash to absorb the shock and aims to sell more of its Galaxy S7 and Galaxy S7 Edge models to compensate.
It is also making changes to safety checks.