Mondelēz UK counters tax avoidance claims

By Michelle Perrett

- Last updated on GMT

A Mondelēz UK spokesman said it was a significant contributor to the UK economy
A Mondelēz UK spokesman said it was a significant contributor to the UK economy
Cadbury owner Mondelēz has countered tax avoidance accusations, insisting it has complied with all UK tax legislation and stressing it has invested more than £200m in UK manufacturing and research and development (R&D).

An investigation in the Daily Mirror ​suggested the business that sells and distributes Cadbury products in Britain paid no corporation tax in the UK last year, even though its profits rocketed by more than 700% to £185m. 

The Daily Mirror​ reported that Mondelēz UK Ltd – the biggest British offshoot of the US owner of chocolate giant Cadbury – managed to offset its profits to help wipe out the potential £35m tax bill. 

"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, as directed by HMRC and the government,” a ​Mondelēz UK spokesman said. 

“We are a global company, operating and paying tax in more than 165 countries and on a global basis we pay hundreds of millions of dollars in corporate income tax annually.”​ 

‘Significant contributor’

"We are a significant contributor to the UK economy, both through direct spending on employees and suppliers, and through the recirculation of that expenditure in the wider economy. 

“We are also investing in our business here and since 2010 are proud to have invested over £200m in both UK-based manufacturing and R&D, supporting our 4,000 employees in the UK.”​ 

Shadow chancellor John McDonnell told the Daily Mirror​: “This is outrageous. Time and time again we’ve warned the Government this type of behaviour is unacceptable. 

‘Need to tighten rules’

“We have told them they urgently need to tighten the rules on tax avoidance.” 

In July, Mondelēz International launched a 30% reduced sugar Cadbury Dairy Milk​ to help combat concerns about obesity. 

Mondelēz International, Inc. will release its third quarter 2018 financial results on Monday, 29 October 29, 2018. 

Related topics: Business News, Confectionery

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