Glencore “paid almost no corporation tax”

Glencore "paid almost no corporation tax"

Swiss pharmaceutical company paid little corporation tax in recent years, according to banks' report

(Story updated 16:00 28/4)

SWISS MINING giant Glencore has paid almost no corporate tax for years, according to a report prepared by the banks underwriting its $60bn (£36bn) listing on the stock exchange.

The Financial Times reports that the trading business made $2.33bn before taxes and interest last year in advance of its listing. The pre-IPO research, by banks including Citigroup, Credit Suisse and Morgan Stanley, show that the tax charges in the trading business are borne by its employees.

Around 485 partners accumulate tax liabilities during their work career and pay them when they cash their shares at retirement as income tax.

“Under the current private structure, [the trading business of] Glencore has been largely tax free,” Liam Fitzpatrick, the lead analyst for Credit Suisse, wrote in the report.

The FT says that the flotation will force Glencore to abandon its trading business tax-free status. UBS said the company’s overall tax rate will jump to more than 20% this year, up from 10% in 2010.

Related Articles

Appropriate tax systems – taxation in the ‘Fourth Industrial Revolution’

Corporate Tax Appropriate tax systems – taxation in the ‘Fourth Industrial Revolution’

4m Jane Mackay, Crowe
Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

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

1y Alia Shoaib, Reporter
EU divided over radical tax reforms targeting tech giants

Corporate Tax EU divided over radical tax reforms targeting tech giants

1y Alia Shoaib, Reporter
How to educate your clients about tax avoidance

Corporate Tax How to educate your clients about tax avoidance

1y Clear Books | Sponsored
CGT clampdown nets HMRC £124m – but could lead to increase in use of avoidance schemes

Corporate Tax CGT clampdown nets HMRC £124m – but could lead to increase in use of avoidance schemes

1y Austin Clark, Reporter
‘Google tax’ nets HMRC £281m

Corporate Tax ‘Google tax’ nets HMRC £281m

1y Emma Smith, Managing Editor
Autumn Statement: Investment and tax avoidance highlighted in Hammond's speech

Corporate Tax Autumn Statement: Investment and tax avoidance highlighted in Hammond's speech

2y Kevin Reed, Writer
Colin: Tell them about the money, mummy

Business Regulation Colin: Tell them about the money, mummy

2y Taking Stock