How debt-financing cut Boots tax bill by £80 million
December 20, 2010
Sophie Ashley - TPW
A chain of pharmacies has cut its UK tax bill by £80 million ($125 million) since it left the London Stock Exchange and moved its tax residency to Switzerland, despite a rise in sales and trading profits.
Alliance Boots, achieved this significant tax saving through the transfer pricing method of thin capitalisation, or debt-financing.
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