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Tesco move to the Cayman Islands

Tesco has created an elaborate corporate structure involving offshore tax havens which enables it to avoid paying what could be up to £1bn of tax on profits from the sale of its UK properties. The complex new structures uncovered by a six-month Guardian investigation include a string of Cayman Island companies. These are being used by the supermarket giant as it proceeds with its announced programme to sell and lease back £6bn worth of its UK stores.
The stores are being sold to external investors providing Tesco with a big one-off gain which, ordinarily, would be liable to tax, while allowing it to remain in the stores and pay rent to the new owners. The first two deals, worth £445m and £650m, have already used the companies set up in the Cayman Islands - where the rate of corporation tax is zero - allowing Tesco to avoid tax on about £500m profit. Large corporations are increasingly developing strategies to cut tax bills and Tesco is not alone in its tax planning.
The Guardian's a…

Tax sharks

Almost a third of the UK’s 700 biggest businesses paid no corporation tax in the 2005-06 financial year as reported here .

Another 30 per cent paid less than £10m each, an official study has found.

According to a National Audit Office analysis of the tax raised from the 700 companies handled by the large business service of Revenue & Customs 50 businesses, or 7 per cent of the 700, paid 67 per cent of the tax while about 220 paid none and another 210 each paid less than £10m.

Some tax experts were taken aback by the small amount of tax many of the companies paid. Michael Devereux of the Oxford University Centre for Business Taxation, said: ”It is certainly surprising.”

NOT so to the Socialist Courier , it isn't .

We reported in the Socialist Standard way back in June 99 that Rupert Murdoch's News Corp protected their profits by a series of complex financial arrangements involving off-shore tax havens—arrangements that have seen News Corp pay no net British corporation tax in 11…