Government slammed over Cadbury’s tax avoidance

THE country’s largest union, Unite, has accused Chancellor George Osborne of turning a blind eye to corporate tax avoidance after it emerged that Birmingham-based confectionary firm Cadbury’s owner, Mondelez International, did not pay UK corporation tax last year.

Mondelez legally avoided paying the tax by offsetting interest payments on an unsecured £8.2bn debt as losses.

Unite regional officer Joe Clarke said: “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 UK corporation tax last year.

“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.

“Once again, George Osborne is turning a blind eye to the accounting machinations of big powerful multi-nationals, but turning the screw on those that 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.

“The case for a closing the net on the legal means for corporate tax avoidance is further reinforced by the Mondelez revelations.

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

In its defence, a Mondelez spokesperson said: “In common with all global businesses, we pay corporation tax based on the laws of the countries in which we operate. We comply with all applicable tax legislation in the UK, and on a global basis we pay hundreds of millions of dollars in corporate income tax annually.”

Cadbury UK made profits of £96.5m in 2014.

It was taken over by the US’s Kraft Foods in 2010 in a £11.7bn deal and now forms part of its Mondelez International arm.