Will the merged EADS / BAE pay tax? Not very likely, based on this evidence

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The Daily Mail notes an interesting point on the EADS / BAE proposed merger. EADS made more than £3billion in revenues from its British operations during 2010, according to corporate documents seen by the Daily Mail. But it paid just £10 million in tax.

They also found a complex global maze of 276 EADS offshoots, including a string of ventures based in tax havens, such as the Cayman Islands and Jersey. EADS, whose headquarters are in the Netherlands (a tax haven), also runs subsidiaries in the low-tax Republic of Ireland.

As the Mail notes:

The revelations have sparked fears that BAE's contributions to Government coffers could dry up after it is folded into EADS, which owns Airbus.

Tax accountant Richard Murphy said: ‘Here's another example of a UK company fleeing our shores for foreign ownership with the inevitable consequence that less tax will be paid in the UK.

‘We'll be paying for the fighter jets and they'll be making no contribution. It's time to change our tax system to make sure every company pays fair tax where it really earns its profits.'

The case for country-by-country reporting grows by the day.


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