Claim Boots underpaid UK tax by £1.3bn

Anti-poverty advocates have asked the British government to investigate the offshore tax arrangements of Alliance Boots, alleging that the pharmacy chain operator has underpaid by as much as £1.3bn (€1.6bn).

UK charity War on Want and US labour union federation Change to Win called on chancellor of the exchequer George Osborne and UK Revenue and& Customs to probe the company’s use of so-called Limited Liability Partnerships, some members of which are based in the tax haven of the Cayman Islands.

“We strongly urge HM Revenue & Customs to bring an investigation into Alliance Boots’ use of these LLPs,” the organisations wrote in a letter that was sent yesterday. They contend the company avoided paying at least £1.12bn through interest deductions over six years, reducing its UK corporate tax bill 95%.