Exposed: Alliance Boots' aggressive tax regime
Unite, War on Want and Change to Win reveal the company's tax dodging behaviour
Alliance Boots has been targeted by tax campaigners over its 'aggressive tax regime'.
New research from Unite the Union, War on Want and Change to Win found that ' Alliance Boots generated UK taxable profits, before interest costs, of £4.5bn between 2008 and 2013. But it also incurred financing costs of £4.2bn over the same period, reducing its UK taxable profits to just £313m.'
War on Want's executive director John Hilary said of the report, "It is utter hypocrisy that Boots relies on the NHS for [much of] its UK revenues, while at the same avoiding its own tax responsibilities."
The report also highlighted that the UK-based branch, which made a third of Alliance Boots' revenue, bore the majority of the company's interest costs, and that Alliance Boots had moved headquarters to Switzerland, a country considered to be a tax haven by Ethical Consumer. These moves were said to have helped significantly depress Alliance Boots' UK tax bill.
Aggressive borrowing with the aim of reducing tax bills was one challenge that the Organisation for Economic Co-operation (OECD) had promised to act on. You can find out more about OECD's promised action by reading the OECD's general report.
You can find out more about Boots' tax dealings at the War on Want website.
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