Caffè Nero bypasses the taxman again

 

Simon Neville
Saturday 12 October 2013 07:38
Comments

The coffee chain Caffè Nero paid no corporation tax for the third year in a row despite making a pre-tax profit of £21.1m, up 11 per cent on last year, according to its latest accounts.

It legally routed its operations through its parent company in the Isle of Man and used a complex structure of subsidiaries to avoid corporation tax on its profits. Sales increased 4.6 per cent to £204m in the year to the end of May but the accounts filed with Companies House show it paid zero income tax by claiming group relief and deferred tax to its other businesses. Caffè Nero has 519 UK stores, with bosses hoping to increase that number to at least 750. It expects to open a further 45 this year.

Last year the company came in for criticism for not paying any corporation tax. Rival Starbucks bowed to public pressure and agreed to pay £20m to the Government after it was revealed it had paid no corporation tax for at least three years by paying various premiums to companies in Switzerland and the Netherlands.

Following an outcry over corporate tax avoidance, Business Secretary Vince Cable called on the Treasury to “get to grips” with the issue. Caffè Nero’s chief executive, Gerry Ford, was unavailable for comment.

Register for free to continue reading

Registration is a free and easy way to support our truly independent journalism

By registering, you will also enjoy limited access to Premium articles, exclusive newsletters, commenting, and virtual events with our leading journalists

Please enter a valid email
Please enter a valid email
Must be at least 6 characters, include an upper and lower case character and a number
Must be at least 6 characters, include an upper and lower case character and a number
Must be at least 6 characters, include an upper and lower case character and a number
Please enter your first name
Special characters aren’t allowed
Please enter a name between 1 and 40 characters
Please enter your last name
Special characters aren’t allowed
Please enter a name between 1 and 40 characters
You must be over 18 years old to register
You must be over 18 years old to register
Opt-out-policy
You can opt-out at any time by signing in to your account to manage your preferences. Each email has a link to unsubscribe.

By clicking ‘Create my account’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Already have an account? sign in

By clicking ‘Register’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Register for free to continue reading

Registration is a free and easy way to support our truly independent journalism

By registering, you will also enjoy limited access to Premium articles, exclusive newsletters, commenting, and virtual events with our leading journalists

Already have an account? sign in

By clicking ‘Register’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Join our new commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in