An island-based tycoon’s property group has rejected claims of ‘tax dodging’ made by Labour MP Margaret Hodge.
The Peel Group is chaired by Ballasalla resident John Whittaker and part of the group, Peel Media, are the developers and owners of MediaCity, the BBC’s new headquarters at Salford.
Mrs Hodge, chairman of the House of Commons Public Accounts Committee, made the comments on Monday as the committee took evidence from BBC executives about the corporation’s move north.
In a statement, a spokesman for the Peel Group said: ‘Following comments made at the Public Accounts Committee meeting on Monday, The Peel Group would like to make it clear that it rejects any assertion that it is not paying its fair share of corporation tax.
‘All Peel operating businesses, including Peel Media (the developers and owners of MediaCityUK), are UK domiciled for taxation purposes and pay the appropriate level of UK tax.
‘Peel was not invited to provide any information to the PAC prior to Monday’s hearing and would be more than happy to do so on request.’
Mrs Hodge questioned BBC chiefs on the value of their £1bn move to Salford, and singled out its contract with landlord Peel for criticism – claiming some parts of the giant pay no tax at all.
She said they should have tried harder to find a firm that paid more tax.
Peel’s various parts pay a ‘maximum’ average of 10 per cent corporation tax, she claimed, adding that its more profitable elements are based abroad and pay ‘nil’.
She added: ‘They do not pay their fair share.’
BBC chief financial officer Zarin Patel said the BBC could not be expected to behave as an arm of the taxman – and said the corporation had been bound by EU rules on open procurement.
But Mrs Hodge said she was ‘fed up’ of hearing that answer and that there were ‘ways round’ such restrictions, adding: ‘Peel almost have a monopoly of a lot of capital investment in this area, which always worries me as to whether you, the BBC, gets the best price.’
