News
Business Energy Switch bringing you the latest news for business electricity, business gas, business broadband and business telephone

Npower accused of £108m tax dodge

Npower has come under fire from tax campaigners for offshore arrangements they say allow it to dodge £108 million of payments to the Exchequer. 

Owner RWE has loaned Npower £2.3 billion since 2008 through Maltese company Scaris, according to a report by lobby group 38 Degrees. Npower paid £463 million in interest through the same route over that period, reducing its taxable profits. 

In a statement, Npower said: "The report doesn't add anything new. We've done nothing wrong and HMRC are aware of everything here and they still class us as a low risk company. 

"It is sad to see this continued harrying of a company like ours that has invested billions into the UK. 

"The number of commentators who have defended our tax position in the last two weeks shows that this criticism is flawed." 

However, David Babbs of lobby group 38 Degrees was not convinced and demanded to meet with the firm. 

He told the Sun: "Npower has been rumbled. By shifting this money through Malta, they avoid millions of pounds of tax. 

"This is cash we sorely need to bring down the deficit and fund schools and hospitals. 

"They claim it's above board, but why else would they funnel profits made in the UK through a Maltese tax haven?" 

Source - http://www.utilityweek.co.uk/news/news_story.asp?id=198483&channel=0&title=Npower+accused+of+%26%23163%3B108m+tax+dodge