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Grolsch tax avoidance

Keith Parkins | 01.12.2010 23:43 | Globalisation | Public sector cuts | Social Struggles | World

Everyone has heard of the Vodafone £6 billion unpaid tax bill, a tax bill which if paid would mean the £7 billion welfare cuts would not have been necessary. Another tax avoider is SABMiller, owner of Grolsch (the beer in the fancy bottles).

schtop corporate tax avoidance
schtop corporate tax avoidance


Everyone has heard of the Vodafone £6 billion unpaid tax bill, a tax bill which if paid would mean the £7 billion welfare cuts would not have been necessary. Well ok, few people have heard of it, not a single one I have spoken to had, which only goes to show the power of the mainstream media, power that is to protect vested interests.

Another tax avoider is SABMiller. Who, is a reasonable response? SABMiller is the owner of Grolsch (the beer in the fancy bottles) and as Action Aid has exposed, they do not pay their taxes in Africa.

 http://www.actionaid.org.uk/

How little tax? its Ghanaian brewery manages to pay less tax per year than a local firm selling its beer at a food stall! SABMiller controls more than 30% of Ghana’s beer market, yet its operating profit there is a mere 0.69% of its income. Why? Because it ensures its 'profits' are recorded in low tax havens. As a result of this practice, the company paid no tax to Ghana for three of the last four years – a significant loss to a country where corporate income tax accounts for £1 of every £7 in the public purse.

SABMiller would argue that what they do is not illegal, though the jury is out on that one. Whether legal or not is beside the point, it is immoral.

The money that African countries lose each year could put an extra 250,000 children in school.

We are quick and rightly so to highlight corruption of African leaders, but what of corrupt practices of Big Business that operates in those countries?

The World Bank and IMF are quick to restructure poor countries, force them into a fire sale of their assets. Why are they not so quick to deal with large companies who exploit their position? IMF and World Bank have the resources which poor countries lack to ensure these companies pay their taxes, have decent working conditions, pay fair wages etc, not as too often facilitate their exploitation.

Tax dodging costs poor countries billions each year – far more than they receive in aid. The more money poor countries can raise in taxes the less aid they will need.

Please sign the letter to SABMiller chief executive to pay their taxes. Add to the letter you will be encouraging everyone to stop drinking their lager.

 http://forms.actionaid.org.uk/ea-campaign/clientcampaign.do?ea.client.id=539&ea.campaign.id=8591

Please pass the word. Post on facebook, re-tweet, e-mail to friends.

Back in the UK, Top Shop has been added by UK Uncut to Vodafone as a major avoider of tax. Like Vodafone, their shops are now legitimate targets to be occupied. Is it not a bit rich that billionaire tax dodger Sir Philip Green (owner of Arcadia Group which includes Top Shop, Dorothy Perkins and Miss Selfridge) is Prime Minister David Cameron's efficiency adviser? But then the finance director of Vodafone is advisor to Chancellor George Osbourne on corporate tax. Maybe they would both like to advise on efficient collection of corporate tax.

 http://www.ukuncut.org.uk/

But help is to hand, UK Uncut has formed the Big Society Revenue and Customs (BSRC). Staffed by armies of citizen volunteers they will replace the HMRC and, in their own unique way, make sure that corporate tax avoiders pay.

UK Uncut has the support of Jubilee Debt Campaign, War on Want and a rapidly growing band of activists.

 http://www.jubileedebtcampaign.org.uk/
 http://www.waronwant.org/

In light of the hard dedicated support by UK Uncut on behalf of society, please nominate for a Big Society Award.

 http://www.number10.gov.uk/bigsocietyawards

Also see

ActionAid exposes tax dodging by UK brewing giant SABMiller, owners of Grolsch
 http://www.actionaid.org.uk/102677/actionaid_exposes_tax_dodging_by_uk_brewing_giant_sabmiller_owners_of_grolsch.html

Schtop fleecing Ghana
 http://www.newleftproject.org/index.php/nlpblog/fulltext/schtop_fleecing_ghana/

Tax Justice campaign
 http://www.actionaid.org.uk/102017/tax_justice_campaign.html

Keith Parkins
- Homepage: http://keithpp.wordpress.com/2010/12/01/grolschs-tax-avoidance/

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