Loading...
See More

AB Foods denies tax evasion claims

Feb 11 2013 08:02 Reuters

(File) (Shutterstock)

Related Articles

Investors to shun tax evading firms

Italy fights tax evasion on YouTube

Africa to discuss tax fraud

Vodafone in new £1bn UK tax 'scandal'

Sars: Large companies avoiding tax in SA

UK cracks down on tax dodging firms

 

London - Associated British Foods denied any "illegal or immoral" activities aimed at avoiding tax after an international charity said the British firm had moved profits out of Zambia to reduce its tax bill.

ActionAid said Zambia Sugar, a unit of FTSE 100 company AB Foods, had made profits of $123m since 2007 but had paid "virtually no corporate tax" in Zambia.

It also said in a report entitled 'Sweet Nothings' that the owner of the Twinings tea and Silver Spoon sugar brands had found legal ways to move $83.7m, or a third of the unit's pre-tax profits, out of Zambia to avoid tax.

AB Foods said in a statement on its website on Sunday that its Zambian unit "denies emphatically that it is engaged in anything illegal, immoral or in any way designed to reduce the tax rightly payable to the Zambian government

The UK company, which also owns clothing retailer Primark, said it does not engage in aggressive tax planning in Zambia

"The group has an open and transparent relationship with all the tax authorities in the jurisdictions in which it operates," the statement said.

For the year ending 31 March 2012, the unit's effective tax rate was 30.3% according to AB Foods. The group has paid £120m in taxes over the last five years and collected another £180m in employment and sales taxes, it said.

ActionAid responded by saying it was standing by its report.

"None of (AB Foods') arguments seem to stack up or tell the whole story," said Chris Jordan on Sunday, a co-author of the report which concluded a year-long investigation.

Tax avoidance by corporations legally channeling profits between international subsidiaries, a mechanism known as transfer pricing, has become a hot political issue with firms like Starbucks, Google and Amazon facing protests and political pressure.  

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

corruption  |  fraud  |  tax evasion
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

Retailers of any shape and size can now unlock the power of mobile transacting.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...