Npower has come under fire for offshore tax arrangement that apparently allows them to dodge £108 million of tax payments.
RWE, the owners of Npower, have loaned £2.3 billion since 2008 through Maltese company Scaris according to a report by 38 degrees. £463 million was paid by Npower in interest over that period, which would reduce it’s taxable profits.
Npower said in a statement “The report doesn’t add anything new. We’ve done nothing wrong and HMRC are aware of everything here and they still class us as a low risk company.
“It is sad to see this continued harrying of a company like ours that has invested billions into the UK.
“The number of commentators who have defended our tax position in the last two weeks shows that this criticism is flawed.”
David Babbs of the lobby group 38 degrees did not agree, however, and demanded to meet with Npower .He told a journalist from The Sun newspaper “Npower has been rumbled. By shifting this money through Malta, they avoid millions of pounds of tax.
“This is cash we sorely need to bring down the deficit and fund schools and hospitals.
“They claim it’s above board, but why else would they funnel profits made in the UK through a Maltese tax haven?”