Abstract

Background: A key driver of the global tobacco epidemic is the massive profit earned from manufacturing tobacco products despite high levels of product taxation. Two of the four major Transnational Tobacco companies are based in the UK, where there is growing evidence of corporate tax avoidance by transnational firms and where there are calls for the industry to pay more towards the harms caused by tobacco products.

Objectives/Methods: UK tobacco company profit and corporation tax data between 2009 and 2016 is obtained from publically available sources. The intention is not to perform a piece of forensic accounting but to establish the broad pattern of profit and taxation in order to inform consideration of tobacco product and firm taxation, and hence public health.

Results: Very little profit based taxation has been paid in the UK despite high levels of reported profits, both in the domestic market and globally.

Conclusions: The UK needs better reporting and corporate taxation standards. Tobacco companies should be made to pay more profit based taxation, such as by extending the surcharge on corporation tax currently paid by UK banks, and by making sure companies pay appropriate taxes when reorganising corporate structures.
LanguageEnglish
JournalJournal of Public Health (United Kingdom)
Early online date6 Feb 2019
DOIs
StatusE-pub ahead of print - 6 Feb 2019

Keywords

  • Tobacco Industry
  • Taxation
  • Corporation Tax
  • Profits
  • UK

Cite this

@article{4607e1f47382459a9729fe49ef0ab9d5,
title = "The Failure of the UK to Tax Adequately Tobacco Company Profits",
abstract = "Background: A key driver of the global tobacco epidemic is the massive profit earned from manufacturing tobacco products despite high levels of product taxation. Two of the four major Transnational Tobacco companies are based in the UK, where there is growing evidence of corporate tax avoidance by transnational firms and where there are calls for the industry to pay more towards the harms caused by tobacco products. Objectives/Methods: UK tobacco company profit and corporation tax data between 2009 and 2016 is obtained from publically available sources. The intention is not to perform a piece of forensic accounting but to establish the broad pattern of profit and taxation in order to inform consideration of tobacco product and firm taxation, and hence public health. Results: Very little profit based taxation has been paid in the UK despite high levels of reported profits, both in the domestic market and globally. Conclusions: The UK needs better reporting and corporate taxation standards. Tobacco companies should be made to pay more profit based taxation, such as by extending the surcharge on corporation tax currently paid by UK banks, and by making sure companies pay appropriate taxes when reorganising corporate structures.",
keywords = "Tobacco Industry, Taxation, Corporation Tax, Profits, UK",
author = "Branston, {J Robert} and Anna Gilmore",
year = "2019",
month = "2",
day = "6",
doi = "10.1093/pubmed/fdz004",
language = "English",
journal = "Journal of Public Health",
issn = "1741-3842",
publisher = "Springer Verlag",

}

TY - JOUR

T1 - The Failure of the UK to Tax Adequately Tobacco Company Profits

AU - Branston, J Robert

AU - Gilmore, Anna

PY - 2019/2/6

Y1 - 2019/2/6

N2 - Background: A key driver of the global tobacco epidemic is the massive profit earned from manufacturing tobacco products despite high levels of product taxation. Two of the four major Transnational Tobacco companies are based in the UK, where there is growing evidence of corporate tax avoidance by transnational firms and where there are calls for the industry to pay more towards the harms caused by tobacco products. Objectives/Methods: UK tobacco company profit and corporation tax data between 2009 and 2016 is obtained from publically available sources. The intention is not to perform a piece of forensic accounting but to establish the broad pattern of profit and taxation in order to inform consideration of tobacco product and firm taxation, and hence public health. Results: Very little profit based taxation has been paid in the UK despite high levels of reported profits, both in the domestic market and globally. Conclusions: The UK needs better reporting and corporate taxation standards. Tobacco companies should be made to pay more profit based taxation, such as by extending the surcharge on corporation tax currently paid by UK banks, and by making sure companies pay appropriate taxes when reorganising corporate structures.

AB - Background: A key driver of the global tobacco epidemic is the massive profit earned from manufacturing tobacco products despite high levels of product taxation. Two of the four major Transnational Tobacco companies are based in the UK, where there is growing evidence of corporate tax avoidance by transnational firms and where there are calls for the industry to pay more towards the harms caused by tobacco products. Objectives/Methods: UK tobacco company profit and corporation tax data between 2009 and 2016 is obtained from publically available sources. The intention is not to perform a piece of forensic accounting but to establish the broad pattern of profit and taxation in order to inform consideration of tobacco product and firm taxation, and hence public health. Results: Very little profit based taxation has been paid in the UK despite high levels of reported profits, both in the domestic market and globally. Conclusions: The UK needs better reporting and corporate taxation standards. Tobacco companies should be made to pay more profit based taxation, such as by extending the surcharge on corporation tax currently paid by UK banks, and by making sure companies pay appropriate taxes when reorganising corporate structures.

KW - Tobacco Industry

KW - Taxation

KW - Corporation Tax

KW - Profits

KW - UK

U2 - 10.1093/pubmed/fdz004

DO - 10.1093/pubmed/fdz004

M3 - Article

JO - Journal of Public Health

T2 - Journal of Public Health

JF - Journal of Public Health

SN - 1741-3842

ER -