"The company, which had been considering a 50bn float on the London Stock Exchange but is expected to list in Hong Kong, paid just 9.6m in corporation tax despite taking 2bn in sales last year. The payment is equivalent to 25% of the 38.2m in pre-tax profits it made in the UK in 2024, according to accounts filed at Companies House, in line with the UK corporation tax rate."
"Very little surplus is left in the UK to be subject to corporate income tax, Paul Monaghan, the chief executive of the Fair Tax Foundation, said. Referring to tactics adopted by Amazon, Apple and Microsoft to transfer earnings to low-tax countries which met heavy criticism more than decade ago, Monaghan said: This feels like a new wild west for tax. The fast-fashion industry now is reminiscent of the worst excesses of big tech's anti-tax measures in previous decades."
Shein Distribution UK reported £2bn in sales but paid just 9.6m in corporation tax after around £1.72bn of those sales were recorded as purchases from its Singapore parent, Roadget Business Pte Ltd. The UK entity showed £38.2m in pre-tax profits for 2024, and the tax paid equated to 25% of that profit. Campaigners and tax experts say substantial related-party transactions shift the bulk of income to Singapore, leaving little surplus in the UK to be taxed. Singapore offers lower headline rates and incentives that can reduce taxed profits to as low as 5%, raising questions about where economic value is booked.
Read at www.theguardian.com
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