Tesco's Tax Web

Those wanting more news about the Guardian/Tesco libel case should read this update today in The Guardian. Assuming this article is correct, the libel case may come down to whether it is more defamatory to be seem to be avoiding paying Corporation Tax or Stamp Duty Land Tax - and whether the amount of tax avoided is a reputation issue for a major corporation.

As we've said before about Tesco, and this applies just as much to its ongoing other libel suit in Thailand (here's the latest news on this), the issue for us isn't so much what Tesco does - it is the fact that it can afford to spend money on legal writs and tax avoidance that smaller shops can't.

Local newsagents, grocers and market traders would love to reduce their tax demands by using overseas companies and hiring expensive tax experts - but they can't afford to. Tesco can, and can then use the tax savings to both improve its massive profits, and cut prices to drive local competitors out of business. So there goes any sense of a level playing field...