Bristol airport: it makes money but pays no company tax

I was browsing through the latest annual report of Bristol International Airport (you browse through all sorts of stuff when you're freelance and looking for story lead) when I came across something odd.

The airport had an operating profit of £24m but paid no corporation tax. Also; it's ownership structure suggested that it was based not in this country but in the Caribbean.

So I emailed the director of finance to ask him why and I got this email back.

My colleague Andy Reid passed on your email enquiry to me.  Apologies for the delayed response – I have just returned from a week’s holiday.

Please see below details of the ownership of

Bristol

International

Airport

.

Bristol International Airport is 100% owned by South West Airports Limited (SWAL), a joint venture holding company owned by

Bristol

Airport

(Bermuda) Limited (BABL) and

Macquarie

European Infrastructure Fund (MEIF). BABL is 71% owned by Macquarie Airports, a fund listed on the Sydney Stock Exchange, and 29% owned by Ontario Teachers Pension Plan, a major infrastructure investor. Both BABL and MEIF are managed by

Macquarie

Capital Funds (Europe) Limited (MCFEL), a subsidiary of Macquarie Group Limited.

Since acquiring an initial stake in Bristol International Airport in January 2001 Macquarie has increased its portfolio of airport investments through its specialised funds and now has stakeholdings in Sydney, Copenhagen and Brussels Airports, and a long term strategic investment in Japan Airport Terminal.

MEIF is an investor in major infrastructure assets and its current holdings include Thames Water, Wales & West Utilities and the Arlanda Express rail link.

You also asked about tax paid by Bristol International.  SWAL did not pay corporation tax in 2007, but will pay in excess of £1.5 million in business rates to North Somerset Council this year.  In addition, National Insurance contributions totaled nearly £700,000 in 2007.

Bristol

International

Airport

’s activities are on their own only a small part of the bigger picture.  Fifty separate companies operate on the site, of which the airport operator is just one.  These other companies pay a range of taxes, including corporation tax.

I hope this is helpful.

Regards

James

 James Gore

Head of Communications

Bristol

International

Airport

Of course, like most stories, someone's done this already. I then came across a document from the Stop Bristol Airport Expansion group which said that the profit had been written off to pay shareholder loans.

That group has its own agenda (although it can produce some pretty robust arguments) but it reminded me of the Guardian's series of pieces about how big companies avoid paying tax. Perhaps someone should look at the airport industry in particular.

This on a day when Virgin can announce a rise in profits. Branson may play the fool but he's obviously got some sharp people working for him.