Caffe Nero’s UK Tax Bill Under Scrutiny Again

caffenero

Oh dear.

What is it with coffee chains operating in the United Kingdom and a seemingly innate inability to pay their taxes?

First it was Starbucks, and then it was the turn of Caffe Nero.

Then Starbucks got in hot water for a second time when the European Union decided to have a look at their affairs.

Given how everything in life is cyclic, Caffe Nero is under the spotlight once again.

The company has received fierce criticism for paying no corporation tax in the last financial year, despite posting a healthy profit of nearly $34m.

In their annual report, the firm stated admitted as such. However, the statement said that corporation tax payments were evaluated at a ‘wider group level’. And as its parent company posted a loss in excess of $40m, there was no tax bill.

When pushed to expand, a company spokesperson said, “Caffe Nero pays all applicable taxes due in the United Kingdom.”

Interestingly, reports suggest that the coffee shop chain has paid no corporation tax in the UK since 2008 – despite having over 500 operational stores there.

In its latest financial figures, it was revealed that Caffe Nero’s turnover great in the UK and Ireland to £241m for the year to June 2015.

It said that this increase in revenue was because of a spate of new store openings and impressive like-for-like sales growth of 2.3%.

Yet despite doing very well, there was no tax bill.

And so, the great tax debate rages on.

picture used under wikicommons

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