Virgin faces £9m tax bill

Virgin faces £9m tax bill

Sir Richard Branson's Virgin group faces questions over the structure of a £21m sale of subsidiary

Virgin may be landed with a £16m bill as a result of a tax structure it used
to sell a Japanese subsidiary.

The Japanese tax authorities are pursuing the group for liabilities arising
from the sale of a 40% stake in Virgin Cinemas to Toho, the film production
company.

Virgin had sold the shares to another subsidiary in Switzerland at a deflated
price before selling it on and thus paying a much lower tax rate on the
transaction, The Times reported today.

Virgin said that the company had done nothing illegal and would be
challenging the accusation. Some £9m of tax is at stake, and Virgin might also
have to pay a £7m fine if it loses.

Related Articles

Watch out when winding up

Corporate Tax Watch out when winding up

3m Emma Rawson, ATT Technical Officer
How might Brexit affect UK tax policy?

Brexit & Economy How might Brexit affect UK tax policy?

3m Santhie Goundar
Corporation tax losses – your newly flexible friends

Corporate Tax Corporation tax losses – your newly flexible friends

5m Emma Rawson, ATT Technical Officer
HMRC large business tax enquiry duration rises to 3 years

Corporate Tax HMRC large business tax enquiry duration rises to 3 years

6m Emma Smith, Managing Editor
SMEs paying higher rate of corporation tax than big businesses

Corporate Tax SMEs paying higher rate of corporation tax than big businesses

6m Alia Shoaib, Reporter
Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

Corporate Tax Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

9m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

9m Emma Rawson, ATT Technical Officer
EU divided over radical tax reforms targeting tech giants

Corporate Tax EU divided over radical tax reforms targeting tech giants

10m Alia Shoaib, Reporter