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<\/div>\nAsda and Morrisons paid no corporation tax last year in the wake of their private equity buyouts.<\/span><\/p>\n The pair paid an average of more than \u00a3200m of corporation tax a year between then in the decade preceding their acquisitions.<\/span><\/p>\n However, as they made <\/span>losses last year \u2013 mostly due to large interest payments on the debts loaded onto their balance sheets \u2013 no tax was due, The Sunday Times reported.<\/span><\/p>\n Last year, rival Tesco paid \u00a3247m in corporation tax whilst Sainsburys paid \u00a3120m.<\/span><\/p>\n Asda was acquired in 2020 by billionaire brothers the Issas, who made their fortune from EG Group. The deal saddled Asda with \u00a34.8bn of debt.<\/span><\/p>\n It made a pre-tax loss of \u00a374m last year, as it racked up \u00a3395.5m of finance costs, which include the interest payments on its debts.<\/span><\/p>\n Morrisons, which was bought by CD&R in 2021 for \u00a37bn leaving it with \u00a36.6nm of net debts, made a \u00a31.3bn pre-tax loss last year as it paid \u00a3406m on financing costs.<\/span><\/p>\n Over the previous decade, Asda paid \u00a31.2bn in corporation tax while Morrisons paid \u00a3836m.<\/span><\/p>\n Sign up\u00a0here\u00a0to g<\/span>et the latest news straight into your inbox each morning<\/span>\u00a0<\/span><\/strong><\/p>\n Despite not paying corporation tax last year, Asda paid around \u00a31.5bn in business rates, national insurances and other taxes, while Morrisons made around \u00a31.25bn.<\/span><\/p>\n The owners of the supermarkets did not take any dividends.<\/span><\/p>\n An Asda spokesman told the newspaper: \u201cLast year Asda chose to reduce its profitability and invest significantly to support customers during the cost-of-living crisis. <\/span><\/p>\n \u201cAsda\u2019s operating profit declined by 25% and the business earned only 1.7p for every pound spent with it.\u201d<\/span><\/p>\nSubscribe to Retail Gazette for free<\/strong><\/h5>\n