Cadbury used Ireland to avoid UK tax

Chocolate giant Cadbury has been blamed for Å“aggressively avoiding tax” in the UK.

The worldâ„¢s second largest Chocolate company, Cadbury, has been blamed for Å“aggressively avoiding tax” in Britain, especially for its use of Irish subsidiaries, before it was taken over by US food group Kraft.

The Financial Times reported that Cadbury had devised plans to cut its British tax bill by more than a third before 2010.

The chocolate company is accused of setting up schemes, using code names like Å“Martini”, to bring about interest charges that could be removed from its gross profits, effectively reducing its British tax bill.

Based on the report, Cadburyâ„¢s schemes helped it reduce its tax on UK operations to an average of £6.4 million a year, despite profits of £100 million and a turnover of more than £1billion in Britain.

The standard rate of tax that Cadburyâ„¢s should have paid would have been around £30 million each year.

BGH/AMR/HE

This article originally appeared on: Press TV