4 Years Without Paying Taxes, Fast Fashion Gap Is Accused Of Tax Evasion In The UK.

On Wednesday, the London standard evening paper pointed out that Gap Inc. (NYSE:GPS)

Group British company has been losing money for the past four years without paying a single cent corporate tax.

Google was charged with tax evasion in the UK and paid 130 million pounds in taxes.

Under the new deal of the new Chancellor of the exchequer George Osborne, the HM Revenue and Customs (referred to as HMRC), the Royal tax and customs administration, is stepping up the investigation and regulation of multinational companies' tax avoidance in the UK.

It is said that the business of Gap Inc. Cape group in the United Kingdom amounted to 300 million pounds, operating 132 Gap stores and 8 Banana Republic Banana Republic stores. In 2012 -2015, the British operating company GPS (Great Britain) Ltd. continued to lose money, but its turnover was more than 1 billion pounds. Because it had not been profitable, the company failed to pay corporate tax in 2015 for four years. Instead, the company received 4 million 200 thousand pounds from the British tax department in 2015.

The London standard evening paper refers to Gap Inc. Cape group using headquarters and Holland companies.

Transfer, GPS (Great Britain) Ltd. annually to the registered Elan in Amsterdam, but the office in Holland, London Gap Gap (Netherlands) BV non royalty royalty, which makes GPS (Great Britain) GPS profit no, can avoid enterprise tax.

According to media reports, the spokesman for Gap Inc. Inc. said that the global tax rate of the group was 39%, and that the total amount of tax paid in the past 10 years was close to $7 billion.

It is alleged that GPS (Great Britain) Ltd. pays royalties of about 13 million pounds to Holland companies, accounting for about 4% of its annual revenue.

Although the Holland company itself also needs to pay taxes in the UK, the Holland company claims to be 12 million 550 thousand for administrative purposes.

Expenses, including the cost to the San Francisco head office and the cost of the Gap UK (Ltd. Holdings) Ltd. of the company.

According to HMRC, in 2015, the agency obtained an additional tax of 25 billion pounds in investigating tax evasion.