BusinessCompany News£115m: That’s Asda’s price in battle with HMRC

£115m: That's Asda's price in battle with HMRC

Asda's £115m payment is tax neutral because parent company Walmart will claw back the tax in the US

Asda has settled a £115m tax battle with HM Revenue & Customs after the

supermarket chain claimed deductions on excessive royalties paid to its
parent Walmart.

However, the payment is tax neutral because parent company Walmart will claw
back the tax in the US,
the
Daily Telegraph
reported.

The tax charge was revealed in Asda’s 2009 results, filed yesterday at
Companies House.

Asda said the tax correction was a one-off issue and followed talks with US
and UK tax authorities over several years.

Further reading:

Asda
loses 18-month flapjack VAT dispute with the taxman

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