Market leading insight for tax experts
View online issue

Press watch: Alliance Boots

printer Mail

‘Alliance Boots …has launched a vigorous defence of its UK tax payments. The Switzerland-based company, which operates the Boots chemist chain, was forced repeatedly to answer questions on tax … as it unveiled a surge in trading profits to more than £1bn.

‘The protest group UK Uncut targeted the group's flagship Boots store on London's Oxford Street in January, but Stefano Pessina, the executive chairman of Alliance Boots, said: “I couldn't care less. Because I know they are wrong.”

‘Alliance Boots – which was taken private in a £11.4bn deal with KKR, the US private equity giant, in June 2007 – paid a total of £240m tax in the UK last year, comprising corporation [tax], business rates and employment-related taxes, such as national insurance.

‘The group forked out £59m on corporation tax last year on pre-tax profits of £637m – equivalent to a tax rate of only 9 per cent – but said, as an international company, it did not disclose how much corporation tax it paid in the UK or other individual countries.’

The Independent, 17 May 2011