Cereal giant Kellogg’s paid no corporation tax in the UK in the year to 31 December 2016 despite making approximately a combined £40m in profit across two of the brand’s UK companies
Kellogg Marketing and Sales made £22.1m in profit in 2016, while Kellogg Company of Great Britain generated £19.2m in profit. However, losses made in other parts of the US business best known for products such as Corn Flakes, Frosties and Coco Pops drove its UK corporation tax bill down to zero.
Filings made with Companies House show the parent company of Kellogg’s UK operations is the Kellogg’s Company in the US, based in Michigan.
In the filings, the marketing and sales arm shows that it drove its UK bill down to zero by claiming group tax relief to the tune of £4.4m to cover losses sustained in other parts of the group, ultimately wiping out its corporation tax bill. Similarly, the Kellogg Company of Great Britain claimed group tax relief amounting to £3.9m.
The US has a network of subsidiaries including Kelloggs Europe Trading Ltd, based in Dublin. While the Marketing and Sales business is under the umbrella of Kellogg UK Holding Company Ltd, the Kellogg Company of Great Britain’s parent company is Kellogg Latin America Holding Company (One) Ltd.
Kellogg’s said in a statement: ‘As a company, Kellogg is grounded in the values of integrity and accountability, and we take our responsibility to pay taxes seriously.
‘We pay all corporate tax according to the laws of the countries in which we operate, and as tax laws and regulations evolve, we will continue to fulfil our obligations.’
Kellogg Marketing and Sales Companies House filing for 2016 can be read here, while Kellogg Company of Great Britain’s filing is here.
Report by Calum Fuller
