Calling fowl on Nando’s secret tax network

Popular fried poultry merchant Nando’s is fending off questions over its use of a complex web of financial structures that reduces the amount the chain pays in corporation tax by a third.

According to a report by the Guardian, a nibble at Nando’s will see cash flowing into a legal network of accounting devices involving Malta, the Isle of Man, Guernsey, the Netherlands, Ireland, Luxembourg, Panama and the British Virgin Islands.

At the top of this elaborate chain sits Nando’s owners, the Enthoven family, with a secretive £750m trust located in a Channel Islands. The arrangements, which include off-shore addresses for their £8m Wiltshire stately home and their corporate structures, mean that the family avoids paying inheritance tax on all their fortune.

According to Nando’s the company paid £12.6m on a profit of £58.2m with revenues of £485.2m in the year ending February 2013, but the tax bill might have been “half as much again, at £18m”, had the offshoring arrangements not existed, the Guardian calculates.

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Readers' comments (1)

  • According to my calculator £12.6m tax on a profit of £58.2m amounts to a tax rate of 21.6%. Isn't that pretty close to the current corporate tax rate?

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