October 23, 2014

Global Radio in the news for tax situation

Global Radio’s tax arrangements have made the headlines as it was highlighted the company hasn’t paid any corporation tax for five years.

The Sunday Times reported on an assessment from the campaigning group Corporate Watch, which said Global has not paid any UK corporation tax in the last five years, pointing out that interest payments on loans it has taken from its owners through the Channel Islands Stock Exchange have wiped out its taxable profits in the UK.

globalradio11But it has been common knowledge for the last couple of years that whilst the company has reported operating profits, it has made a pre-tax loss meaning it doesn’t need to pay corporation tax.

The report points out that LBC, owned by Global, is currently home to deputy prime minister Nick Clegg’s weekly phone-in show Call Clegg and suggests the news will be embarrassing for Labour leader, Ed Miliband, who in 2011 appointed Sir Charles Allen, Global’s chairman, to lead a review of the party’s structure and finances.

A spokesman for Global Radio said: “Global has invested over £500m in commercial radio in the UK over the past 6 years and played a major part in promoting and rejuvenating the sector. Global is a fully tax-compliant company, as agreed with HMRC.”

Corporate Watch continues: “Global’s UK companies are ultimately owned and controlled by the Jersey-based company Global Radio Group Limited. The UK companies’ accounts show they have borrowed £233 million from their owners at a massive 15% interest rate, with another £252 million at 10.5% from another company only described as a ‘connected party’.”

Global Radio will find out in one month (May 22nd) if their takeover of GMG’s radio division gets Competition Commission approval after almost a year since the deal was done.

Posted on Monday, April 22nd, 2013 at 3:15 pm by .

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  • Michael Bolton

    If I buy a car it does not mean I’ve “invested” £20K into the British car industry.

    • Seen It

      Awesome reply… I’ve ‘invested’ thousands in TESCO and my local chip shop over the years too!

    • No Sleep

      I loved your album ‘Everybody’s Crazy’ Michael. By far your best work sir!

  • Bainey

    Lets face with it with capitals lose of listener ship they have got to have lost some profit along the way lol

  • http://twitter.com/declaa Declan McGrath

    The North Wales Licence will be sold because it runs out on the 31st of October. Roll on May 22nd. :)

    • MB

      It will be automatically renewed if they put it on DAB in NE Wales.

      • http://twitter.com/declaa Declan McGrath

        Ah right. Well there is a lot of space too put it on DAB NE Wales if they have to.

  • http://www.facebook.com/ddwig Dave Wiggy Wiggins

    Just liked the fat cats at banks global radio company is liked now it is true now that global radio company have not pay their tax so i do feel and do say wright now it is not wright and not good to let global radio company to take over gmg radio stations real radio and smooth radio and real radio xs now let other radio groups liked bauer media and utv to take over gmg radio stations real radio and smooth radio and real radio xs now
    do not let global to take over them now please

    • http://twitter.com/declaa Declan McGrath

      Dave it,s ovbvious that they are going to get the go ahead.

  • http://www.facebook.com/ddwig Dave Wiggy Wiggins

    This Is fat cats it is true but none of you can under stand this it looks liked now

  • watching

    well well well.

  • lol

    The greatest tax avoidance of all time…this is gold. Come to think of it I’ve never heard Taxman by the Beatles on the station whenever I’ve listened.

  • http://www.facebook.com/profile.php?id=100003294357207 James Martin

    Perfectly legal and I don’t pay to listen to their products.

  • Bright Spark

    Simply Red – Money’s too tight to mention.