Rolls-Royce paid no UK corporation tax in 2012
05 Mar, 2013
It has been revealed that the world-renowned engine manufacturer, Rolls-Royce has had a record year for profits, while paying nothing in UK corporation tax.
The company’s annual report, which was released in February, shows profits of £1.4billion in 2012, whilst its UK tax bill remained at zero for the second consecutive year.
According to the BBC, Rolls-Royce said the reason for this was the fact that the majority of its sales were in other countries and the company’s investment in research had reduced the amount of tax it was liable for.
However, this is unwelcome news for most, with John Mann MP commenting: “There is no reason for Rolls-Royce, or any other company, not to be paying their fair share,” according to the BBC.
He added: “That’s where the HMRC needs to use the powers it’s got properly, but also if it thinks it needs more powers and changes in the law [it needs] to come forward.”