UK
A report by University of Bath academics is accusing four cigarette companies of consistently paying less than the headline rate of UK corporation tax while paying hundreds of millions of pounds in tax overseas.
The companies, which include Imperial Brands and British American Tobacco, have disputed the report’s findings. The report said Imperial Brands, BAT, and Gallaher, a subsidiary of Japan Tobacco International (JTI), made UK operating profits of more than £1 billion between them in 2016 but paid £83.6 million combined, a rate of less than 10%. The researchers said taxation rules should be reformed and that firms should have to report all measures of profit in every country where they operate.
The researchers also called for tobacco companies to be hit with a tax surcharge similar to the one applied to banks, which pay an extra 8% on profits above £25 million.
Imperial Brands said the report made a number of estimates that the company did not recognize, as well as saying that Imperial paid corporation tax of £50 million in 2018 and billions when including tobacco excise duty.“Our total tax contribution in the UK is approximately £4.5bn annually, making us one of the highest UK tax contributors,” the company said.
JTI said it paid all taxes that were due, including £138 million in corporation tax from 2013-17 and £3.7 billion in excise duty, while BAT said it had reduced its tax liabilities by putting £500 million into its pension scheme between 2011 and 2016.