Lush Cosmetics, the manufacturer and retailer of fresh, handmade cosmetics and exotic bath products, has become the first high street multinational company in the UK to be awarded the Fair Tax Mark
This now opens up the opportunity for large businesses to be equally open and transparent about their tax affairs and, in turn, will enable shoppers to support those businesses that pursue responsible tax behaviour.
Mark Constantine OBE, Co-founder and managing director of Lush said: ‘Tax is a notoriously murky and controversial area of business. Today more than ever it's reassuring to know that the Fair Tax Mark is setting a benchmark for responsible tax behaviour. We're both flattered and proud to have made the Mark.’
The announcement came as Lush released its latest consolidated financial statements.
In a statement, Constantine said: ‘We believe these reports provide an open and transparent view of the business and are delighted to highlight our country by country tax reporting which has contributed to us being the first multinational retailer to be awarded the Fair Tax Mark accreditation.’
In 2014, the retailer posted year-end pre-tax profits of £23.3m with brand sales of £454m. It currently operates 105 stores in the UK and has over 900 stores in 49 countries.
The company has an ethical tax policy, detailed on a blog on its website at https://www.lush.co.uk/article/company-tax-policy
Lush states that it 'pays tax in accordance with all relevant laws and regulations in the territories in which we operate but also in not using complicated tax loopholes to take advantage of legal but essentially questionable tax schemes, and also has a clear transfer pricing policy to ensure that the way we charge between our inventing, manufacturing and retail companies is transparent, arm’s length and properly documented, and that it complies with local laws'.
Launched in February 2014, the Fair Tax Mark is the world's first independent accreditation process which supports companies making a genuine effort to be open and transparent about their tax affairs.
In its first year since launch a number of UK companies have been awarded the Fair Tax Mark, including Unity Trust Bank, Midcounties Co-operative and the Phone Co-op ; FTSE 350 member, the Go-Ahead Group; and the only FTSE 100 company on the list, SSE Group plc.
Find out more about the Fair Tax Mark at www.fairtaxmark.net
Additional reporting by Sara White