A regional publisher has revealed it could face a tax bill of up to £6m as a result of a government investigation.
Archant has confirmed that its chairman Simon Bax has written to the company’s shareholders about the probe by HM Revenue and Customs, which centres on a “legal reorganisation” said to have taken place in 2011.
In his letter Simon, left, wrote: “In the event that HMRC were to prove that the company had a tax avoidance motive in putting this structure in place… there could be adverse cash outflow of up to £6m.”
However he also insisted that that the company “has never acted to illegally avoid tax”.
The letter also referred to “a large adverse tax movement of £24m in the company’s pension scheme deficit” due to “volatility” in the gilts market.
An Archant spokesman told Media Guardian the company was confident that the new tax inquiry would not find it liable to make an additional payment.
He said: “The business is strong and we are very positive because of having cash in the bank.”
Simon took up his position with the company in April last year and previously served as chief financial officer of Twentieth Century Fox in the USA.
A spokeswoman for HMRC told HTFP: “We are unable to comment on identifiable taxpayers.”
In 2013 it was revealed Archant faced paying up to £13m in corporation taxes dating back 10 years, following a court ruling against another media company.
Sign up for our free daily email bulletin
Follow HTFP on Twitter
Got a story? Email the Editor at
Bax to the wall
Report this comment
It’s only money!
Nothing to see here, move along.
Report this comment
Whoever concocted the phrase “adverse cash outflow” needs – nay, deserves – a hefty and immediate pay increase. It’s up there with “over firmly denied”.
Report this comment
Is this government investigation anything to do with the exciting new investigations team set up at Archant and reported on HTFP recently? Perhaps the investigations unit could help the government with their investigations or even investigate the government investigation. I think this needs investigating and I know just the investigations team who would be perfect to investigate it.
Report this comment
Worrying times. Will there be anything to put in my pension pot when I retire?
The directors’ remuneration section in the annual report (page 26) makes interesting reading.
Despite all the gloom, the figures show an increase from 996000 in 2013 to 1.415m in 2014. In respect of the highest paid director the aggregate remuneration has climbed from £373,000 (2013) to £603,000 (2014).
Report this comment
Sooner or later it’s all going to hit the fan..
Report this comment
Crisis? what crisis?
I’ve not seen anything about this is the ‘cracking’ EDP, in the very popular and huge selling Evening News or on the highly professional Mustard TV. I’m sure they would have featured this as front page news if this were true?
So come on,as if Archaht would do anything like falsify ABC figures, exaggerate viewers of Mustard TV or be investigated by HMRC
It’s ‘exciting’ times at One Archant they keep telling us so it must be true,so ties off, say yes’ a lot and hooray for the new regime!
Report this comment
You allude to a valid point Archant Lifer but, with respect, you don’t quite get there. Speaking as a former editor and production editor with Archant the fact that the Board can arbitrarily increase their own salaries and benefits at the same time as maintaining a pay freeze on the vast majority of staff displays an unspeakable arrogance and says everything you need to know about how the executive management regard their staff. This attitude also filters through to a largely compliant middle management who willingly sacrifice the welfare of their staff and the quality of their newspapers for the sake of their own positions. The consequence of this is knee jerk decisions made on short-term insight, a decline in quality and a rapid decline in circulations. I could name names but, naturally, it would be unwise to do so. However, it has to be said, there are journalists of long standing who have lost their sense of principle and have sold their souls in the cause of protecting their own interests. What is the saying, it only takes good men to say nothing……………………
Report this comment
Very true Mr Hutchings but for some reason mssrs Bax and Henry are either happy to turn the other cheek and accept the yes man mentality or are powerless to do anything about it.
Neither option is in the best interests of the company or staff who work under these self serving people
I just wonder how desperate or insecure these middle managers must be to want to cling on to a rapidly sinking ship whilst all the good ones have jumped already.
Report this comment
Most of the good ones were eased out to make way for cheaper stock, Employee x.
Report this comment
Or ‘the nodding donkeys’ as we call them here Citizen, it’s fun watching them bow and scrape to their ‘masters’ then to hear what they’re saying about them behind their backs, priceless
Report this comment
Steve Hutchings hits the nail on the head. With a few notable exceptions, editorial management is full of weak yes men. They’ve forgotten why they became journalists in favour of a few extra grand, the occasional freebie which would never be offered to junior staff and an impressive sounding title – being deputy assistant content editor (digital) of a paper with no integrity, no quality and no readers is a bit pointless.
Report this comment