ASH Daily News for 30 April 2019
- New Tax Justice Network report shows BAT avoids corporate tax
- Track and Trace application process open for all retailers
- Culprits jailed for stealing previously seized illicit tobacco
- ASH #ActOnTobacco Campaign
New Tax Justice Network report shows BAT avoids corporate tax
A new report from the Tax Justice Network has shown that British American Tobacco (BAT) moved hundreds of millions of dollars out of developing countries into a UK subsidiary to reduce its tax bill. In 2016 BAT moved $941m (12% of its group pre-tax profit) from overseas companies to its British subsidiary, BAT Holdings.
It is estimated that through this ‘financial manoeuvring’ BAT will avoid paying $700m (£540m) between now and 2030 in Bangladesh, Indonesia, Kenya, Guyana, Brazil, and Trinidad and Tobago.
The Tax Justice Network’s chief executive, Alex Cobham, said: “Cigarettes not only impose massive human costs, those who profit from them are actively depriving lower-income countries of the public funding they need to provide people with health services. At a minimum, governments must require tobacco companies to publish country by country reporting to make sure profits are taxed in the communities where they were raised, not in the tax havens they were siphoned off to.”
Source: The Guardian, 30 April 2019
Track and Trace application process open for all retailers
From today, all retailers will be able to apply for the codes they need to be able to purchase tobacco after track and trace regulations come into force next month.
The regulations require retailers to have an Economic Operator Identifier Code (registered to their business) and a Facility Identifier Code (for each of their stores) in order to purchase compliant cigarettes and hand-rolling tobacco products from 20 May 2019.
Source: Talking Retail, 30 April 2019
Culprits jailed for stealing previously seized illicit tobacco
A gang who stole previously seized illicit tobacco from the high-security depot where they worked have been jailed. The men worked at the East Kent Waste Recovery Facility in Sandwich, then run by Augean, which had a contract to incinerate high-value seized goods on behalf of Border Force officials.
Source: BBC News, 24 April 2019
ASH #ActOnTobacco Campaign
Today is the fifth day of a week long campaign by ASH and our partners, highlighting how Big Tobacco’s profits continue to be built on a lethal trade and shady dealings.
Today’s blog looks at a new report by the Tax Justice Network which shows the lengths British American Tobacco goes to avoid paying corporate taxes, particularly in low and middle income countries, where about four in five of the world’s smokers live.