Bus company Arriva who are responsible for running a number of London’ bus routes have had their tax affairs called into question.
The firms two main subsidiaries in the capital, London North and South turned profit of £31.6m in 2011 on a gross of £330m. But ‘administrative costs’ were incurred claimed the company, to the sum of £37.6m. This meant losses were reported and no corporation tax was owed.
Arriva, which is owned by Germany’ state-owned railway company Deutsche Bahn contest that the costs are genuine and that they are an accumulation of real estate,legal fees and administration costs. ‘Substantial’ losses are claimed to be down to depot closures and the scrapping of old buses.
A spokesmen for the company said: ” We are committed to operating with integrity in all aspects of our business, including tax. Arriva London North and London South both recorded losses in 2011, so no corporation tax was due.”
Given the Mayor’ criticism of companies such as Starbucks and Amazon regarding their own tax affairs, London Assembly member Darren Johnson has urged Boris to investigate as Transport For London paid £330m to Arriva to run London North&South. This will come as an insult to customers as fares continue to rise with the Mayor being content on giving Arriva public money.
A spokesmen for Mr Johnson said: The Mayor believes companies have an obligation to show their commitment to the societies they work in and profit from. He has asked TFL to clarify this issue with Arriva.”