Viagra maker Pfizer paid no corporation tax in UK despite 1.8bn pound turnover
Global pharmaceutical giant Pfizer, one of the largest suppliers of drugs to the NHS, did not pay any corporation tax in the UK last year, despite having a whopping turnover of around 1.8 billion on its sales.
The company behind drugs Viagra and Lipitor however posted an operating loss of 46 million pounds in 2010 and 59 million pounds in 2011 in the UK.
If Pfizer's profit margins in the UK had been similar to average, it would have made a 347 million pounds pre-tax profit on its earnings in the country.
According to the Daily Mail, the firm might have been expected to pay 25 percent tax to the UK government.
Critics argue that Pfizer, which has its UK headquarters in Tadworth, Surrey, and Maidenhead, Berkshire, is typical of the way large global firms legally avoid paying tax by reporting profits in low tax havens, the report said.
It comes just days after Britain's most senior tax official, Her Majesty's Revenue and Customs's chief executive Lin Homer, was slammed for 'failing to get to grips with tax avoidance' by an influential group of MPs, the report added.
The government has launched a crackdown on major global firms that take advantage of the tax regime to reduce their tax bills legally to funnel profits overseas.
Public outrage over the issue has mounted after it emerged that giants including Starbucks, Google, Facebook, Amazon and eBay all pay relatively little tax in the UK, the report added.