Research paper done for GACC shows the techniques Gatwick uses to pay no UK corporation tax

It has been well known for several years that Gatwick airport uses a range of (legal) techniques and schemes to minimise its tax payments in the UK. Now a research paper – one of a series that local campaign GACC (the Gatwick Area Conservation Campaign) is producing – sets out much of the detail of how Gatwick does it.  The paper shows how Gatwick earns revenues of over £630 million per year, and yet pays no corporation tax.  While public attention – and anger – have concentrated on Google and Starbucks, Gatwick is playing the same game.  It pays no tax by complicated arrangements that include a combination of tax allowances for capital investment and deductibility of interest on debt, aided by a tangled web of inter-related company ownership in tax havens such as Luxembourg, Guernsey and the Cayman Islands. This complexity is not available to small companies. GACC says its new study is not easy reading for the layman but will be of considerable interest to investors who may be asked to fund a new runway, and to the DfT, which is at present trying to work on the new SE runway issue. Currently EU Finance Ministers will meet in Amsterdam on Friday 22 April to toughen company tax rules. That could cast doubt on the financial viability of a 2nd runway if some of the tax deals are tightened by by the EU and the G20.
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