Is Nando’s evading tax?

The Guardian article says that the tax structures used by Nando’s significantly reduce the amount of tax it and its controlling shareholder pays, compared to a conventional onshore British operation.

However in a statement emailed by the company’s public relations firm and found here, Nandos points out that it paid £12.6m in tax on a profit of £58.2m. This equates to a tax rate of 23%, which is the headline rate of UK corporate tax.

“Serving chicken in so many different places does make our parent group’s financial structure complex, but we have always been open and honest about the tax we pay in the UK.

“In addition to the tax we pay, we employ 11,000 people in this country and are growing all the time, creating new jobs and supporting more and more UK businesses as we go,” the statement reads.

The company has invested heavily in its staff, and many franchisees are former employees. In 2010 Nando’s was voted the Sunday Times (UK) Best Place to Work.

However no one is disputing the tax paid on profits. The issue is accounting for revenue – and this is what is getting the British press riled up.

via Nando`s grilled for tax avoidance – South Africa | Moneyweb.

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