Some of Britain’s largest water companies will use offshore tax havens. That is stirring debate among citizens regarding whether that should be allowed. Many firms are now being loaded with billions in debt capital. Leaders do have their reasons for making these controversial moves in the UK. But the economy could have its own say once the effort is finished. These large scale water companies are essential for Britain’s future. These owners have hard choices to make for their businesses.

Key Takeaways:

• British utility companies are taking out huge loans from offshore companies to provide huge profits for the owners.
• The loans allow the company to take huge tax write-offs, and pay little to no tax.
• Regulators are unhappy about the offshore tax structures, and would like the utilities to stop using them.

“The Paradise Papers have shone a light on the use of offshore tax havens by the rich and famous – but they are also popular with utility firms.”

Read more: https://www.thisismoney.co.uk/money/markets/article-5078471/Britain-s-water-firms-flush-profits-tax-havens.html