Post Office may face £100m tax bill over Horizon payouts
Dan Neidle of Tax Policy Associates says the Post Office paid less tax by deducting payments to victims of the Horizon scandal from its profits, a move experts say could be in breach of tax laws. Mr Neidle estimates that deducting postmaster compensation from its trading profit would mean that the Post Office underpaid more than £100m in corporation tax.
Heather Self of Blick Rothenberg says payments of compensation by the Post Office are almost certainly not deductible for corporation tax purposes. While the Post Office appears to have deducted compensation provisions from their taxable profits, it did not do so when it came to calculating executive pay. Mr Neidle said: “Bonuses have been paid to the executive team based on an apparent level of profitability which does not exist.”
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