Heathrow is under fire for paying just £24 million in tax while paying its owners £2 billion
Heathrow used perfectly legal measures to circumvent the tax, offsetting tax against interest payments on big debts it incurred after its 2006 takeover, led by Spanish infrastructure giant Ferrovial.
But the fact that it began paying dividends to its owners in 2012, with payments totalling £2.1 billion ($3 billion), has raised eyebrows.
Labour MP Margaret Hodge, who chairs the all-party parliamentary group on tax, told the Sunday Times:
Heathrow makes money out of British people travelling and it's about time they accept the responsibility that they should also contribute to the pot. If people are paying massive dividends and not paying tax, this smells wrong.
Heathrow told the Sunday Times:
Government set up this tax policy so investors would be happy to put their money into upgrading British infrastructure. Heathrow complies with all tax rules, does not operate tax avoidance measures, does not route funds through tax havens and does not accept shareholder loans to fund the business. It is also one of the largest business-rate payers in the UK.
The airport, which is currently lobbying hard for government support for a third runway, put out a business update on Monday, saying: "Heathrow continued to play a leading role in helping Britain's exports reach global markets" in 2015.
Here are the other highlights from the full-year update:
- 75 million passengers flew through Heathrow in 2015, up 2.2% on 2014;
- Passenger volumes up 14% to China, 8% to Latin America and 6% to the Middle East.
Heathrow CEO John Holland-Kaye says: "2015 has been a banner year for Heathrow, serving more passengers than ever and being recognised in a number of awards as the best major airport in Europe for both passenger service and eco-innovation. The record levels of passenger satisfaction are due to a significant increase in training, apprenticeships and the number of frontline colleagues moving into management roles.
"Our new expansion plan will make Heathrow the most sustainable hub airport, and Britain the best connected country in the world. We are ready to serve."
- A centenarian who starts her day with gentle exercise and loves walks shares 5 longevity tips, including staying single
- A couple accidentally shipped their cat in an Amazon return package. It arrived safely 6 days later, hundreds of miles away.
- FSSAI in process of collecting pan-India samples of Nestle's Cerelac baby cereals: CEO
- 7 Nutritious and flavourful tiffin ideas to pack for school
- India's e-commerce market set to skyrocket as the country's digital economy surges to USD 1 Trillion by 2030
- Top 5 places to visit near Rishikesh
- Indian economy remains in bright spot: Ministry of Finance
- A surprise visit: Tesla CEO Elon Musk heads to China after deferring India visit
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market