Caffe Nero paid no corporation tax last year, despite £25.5m profit Coffee shop chain Caffe Nero paid no corporation tax in the UK last year, despite ringing up profits of £25.5m. […]

Coffee shop chain Caffe Nero paid no corporation tax in the UK last year, despite ringing up profits of £25.5m.

The company, which has 613 stores in the UK and Ireland, said it paid no corporation tax because its parent company reported a loss.

Caffe Nero is part of Rome Pikco Group, a holding company that manages the chain’s presence in the UK, Turkey and the Gulf states, and reported a loss of £22.2m in the year to the end of May 2016.

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Companies House filings show turnover at Caffe Nero grew 6.7 per cent to £257.6m as it opened 31 stores over the year.

Caffe Nero has not paid UK corporation tax since 2007 and came under criticism last year for not paying corporation tax in 2015 on profits of £23.6m. Starbucks has also faced backlash in the past over alleged tax avoidance, but has since changed the structure of its company and paid an £8.1m UK corporation tax bill in 2015.

Last year it emerged the owner of Cadbury had paid no corporation tax in its latest financial year, despite making a profit of £177.6m on sales of £1.73bn. Mondelez said the figure was inflated by a “one off gain” from selling its coffee business.

Caffe Nero was founded in 1997 by entrepreneur Gerry Ford. The company was listed on the London Stock Exchange in 2001, but was brought back into private hands after Mr Ford led a management buyout in 2007.

Caffe Nero could not be reached for comment on Sunday.