Thames Water paid no corporation tax in 2012
It was reported on Monday 10th June that Thames Water revealed that it paid no corporation tax and pocketed a £5m credit from the Treasury in a year when it made £550m in profits and had a turnover of £1.8bn.
At the same time bills went up 6.7%, 646m litres of water a day were lost through leaky pipes and hundreds of ratepayers saw their homes flooded with sewage.
Chief executive Martin Baggs was awarded a pay rise of 5.9%, taking his basic salary to £450,000.
He also received a bonus of £274,000 as part of a scheme to "reward significant improvement in the group's financial and corporate performance" and next month will pick up a further £366,000 in shares under the company's long-term incentive plan.
A spokesman for Thames Water said: "We have not paid much corporation tax in recent years because the government's tax system allows us to delay, not avoid, payment of tax based on how much we invest. Because we are investing £1bn a year from 2010 to 2015, more than any water firm in the UK's history, we are able to defer a lot of tax payments to future years."
Thames Water is owned by a consortium of investors led by the European arm of the Australian bank Macquarie Group. Since the group bought the company in 2006, Thames Water has paid out £1.4bn in dividends.
See the Corporate Watch on Thames Water over its tax avoidance and the Thames 'super sewer' in the July/Aug issue of Ethical Consumer magazine, published soon.
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