A foundation trust which could face a bill for underpaid tax from the German authorities was paid £454m for providing services to the Ministry of Defence, HSJ can disclose.
Guy’s and St Thomas’ was paid the sum between 1996 – when the contract providing services for British forces stationed in Germany began – and 2011-12, a Freedom of Information Act request has revealed.
As HSJ previously reported, the trust is waiting to hear if it faces a German tax bill on the profits from its work.
The MoD data shows Guy’s and St Thomas’ pay for the work rose from £20m in 1997-98 to £40m in 2011-12.
Senior management at the trust was advised by lawyers that the work could result in a bill for unpaid taxes.
A trust spokeswoman said in May the trust had “received tax advice suggesting that it would be prudent to ask the German tax authorities for binding advice on the tax position” but had “very strong grounds to believe that we do not have a tax liability in Germany”.
The trust is bidding to extend the contract, which is due to expire in April 2013 and could be worth £360m over seven years.
7 Readers' comments