Kellogg’s British arm pays no UK corporation tax

THUMBS UP Profits rose 180% last year KELLOGG’S British-based manufacturing arm paid a big bowlful of nothing in UK corporation tax last year – despite profits soaring.

The Kellogg Company of Great Britain enjoyed a sweet 180% leap in profits last year, rising to £33.9million from just over £12million the year before.

It came with turnover of £138.9million, accounts show – up from £130.3million.

Yet the business has paid no corporation tax since 2015, when it paid £15,000.

Since 2009 it has paid £7.5million, while generating £178million in profit.

The Kellogg Company of Great Britain employs 800 here, making cereals under contract with an Irish-based operation. Its immediate parent company is Kellogg Latin America Holding, registered in Manchester. The last accounts for Kellogg Latin America Holding, described as an investment company, recorded a £2.2million loss for 2017.

While there is no suggestion Kellogg’s has done anything illegal, the accounts highlight the web of businesses operated by the US firm, led by CEO Steve Cahillane. The Mirror told in November how Kellogg’s four trading arms here, including the Kellogg Company of Great BOSS Kellog’s CEO Steve Cahillane Britain, had combined profits of nearly £40million in 2017 on £944million sales.

Yet Kellogg’s seemed able to use losses from a number of UK-based investment offshoots to pay no UK corporation tax.

Firms can legitimately offset losses in one area against profits elsewhere, wiping out corporation tax liabilities.

Paul Monaghan, of the Fair Tax Mark scheme, said: “They need to provide clarity on how much income and profit they make in each country, and the tax they pay in each jurisdiction.”

Kellogg’s said: “We pay all corporate tax according to the laws of the countries in which we make and sell our foods. As tax laws and regulations evolve we’ll continue to fulfil our obligations”.