Cadbury’s owner paid no corporation tax from subsidiary despite higher profits
Mondelez UK benefited from the change in tax rates and higher non-taxable income.
Cadbury’s owner Mondelez paid no tax from its UK subsidiary last year, despite profit increasing eightfold to £185 million.
Mondelez UK Limited, the British sales and distribution arm of the US confectionery giant, made £1.6 billion revenue in 2017 according to the latest accounts filed to Companies House.
Profit before tax was up more than 700% to £185 million, compared with £22 million the previous year.
But the accounts show a tax credit for £320,000 in 2017.
In the prior year, Mondelez UK paid £122,000 in tax.
The difference was partly due to almost £30 million of income being deemed non-taxable, as well as a decrease in the UK corporation tax rate from 20% to 19% in April 2017.
Meanwhile the company paid out a dividend of almost £250 million to its immediate parent company Kraft Foods Schweiz Holdings, which is based in Switzerland.
The UK division also gained £170,000 after the proceeds of the Vegemite brand sale in Australia were distributed among Mondelez subsidiaries.
According to the Daily Mirror, a network of 48 British Mondelez subsidiary companies paid a total of £5.9 million combined in corporation tax last year on profits of £1.3 billion.