Saga and the AA have paid almost no corporation tax whilst being owned by
Research by the
BBC suggests that the two offset their profits through the interest payable
on their debts.
In 2006, the AA made a profit of £252m, wiped out by £222.3m ‘finance costs’.
Saga told the BBC it had made EBITDA of almost £160, eliminated by interest
charges on £1.6bn of debt.
The findings will probably be looked at by the Treasury Select Committee,
currently investigating private equity and its tax arrangements. The alleged
abuse of the tax system has cause a political row.
Labour MP and head of the committee John McFall said: ‘The question is, are
the private equity companies using debt as equity?’
‘If they are, then they are distorting the system. These are questions that
are still to be answered.’
Does Darwin's theory apply to taxation? Colin ponders...
The UK tax gap fell in 2014-15 to its lowest-ever level of 6.5%, revealed official statistics published today
Changes to the tax system is urged to support the growth of entrepreneurs, found a report from the Grant Thornton UK, the Institute of Directors, and the Prelude Group
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states