- If Cadbury were to divert just 3% of revenue to the UK each year, an extra £10.6 million could go to Covid-19 relief, research shows.
- The confectionary company has seen a 3% rise in global revenue over Q1 this year – representing an estimated increased profit of £158 million.
- Cadbury currently claims 3.03% of its global revenue in Ireland, where corporation tax is 6.5% lower than in the UK, and 8.5% lower than in the US.
- Applying UK tax to Cadbury’s offshore profits during Q1 alone would create an extra £308,100 in taxes that could be used to fund vital services like the NHS.
If Cadbury were to divert their offshore profit held in tax havens to the UK, the confectionary giant could contribute a staggering extra £10.6 million to COVID-19 relief, research finds.
The Irish Money Funnel report also reveals that other notable food and drink companies, including Dominos, Mars and Krispy Kreme, also pay significantly lower corporation tax by registering revenue in Ireland, as opposed to the UK.
Cadbury reported a substantial 3% increase in Q1 global profit compared to the same period last year, with online orders of letterbox gifts and sweet hampers likely to have surged as Brits seek alternative gift ideas to send to others in lockdown.
This increase led to a high estimated quarterly revenue of £5.27 billion – just 31.9% of which is currently reported in the UK and generates £319 million in tax. If the 3% profit that the corporation made in Ireland were diverted to the UK, a further £308,100 could be created.
If Cadbury had diverted the 3% of its annual revenue currently held in Ireland to the UK over the last year, a further £10.6 million could have been contributed through taxes to fighting the COVID-19 pandemic. This comes as Cadbury uses its chocolate machines to make protective kits for the NHS – yet continues to evade taxes by using havens.
This extra £308,100 generated in Q1 of 2020 could have been used to purchase 341 million NCP surgical face masks, 4,108 at-home COVID-19 antibody testing kits, or make up the furloughed wages of almost 51 workers, based on the average annual salary in the UK.
Extra funding that could be made available through taxes
- Cadbury – £10.6 million
- Dominos – £3.9 million
- McDonald’s – £5.1 million
- Subway – £34 million
- Heineken – £29.8 million
- Nando’s – £1.4 million
- PepsiCo – £89 million
- Mars – £6.8 million
The analysis comes as a study found that the COVID-19 donations made by major tech firms – including Apple, Facebook and Google – only amount to 0.2% of their offshore profits that benefit from significantly lower tax rates.
Apple has saved over £14.3 billion over the last year by holding 65% of its global revenue in Ireland, while Microsoft has both avoided paying £4.4 billion. If both companies were to subject their profit to the UK tax rate, they could add an extra £11.9 billion to the economy.
In reality, health services and other essential corporations would be better served if major companies stopped diverting profit to tax havens – particularly during unprecedented events like the current pandemic.
To find out more about how much of the world’s top companies’ revenue is held in Ireland, please visit: https://www.spincasino.com/projects/irish-money-funnel/