Domino’s Pizza has warned it could be slapped with a retrospective tax bill related to past bonus schemes dating back to 2003.
In its annual report, the fast food chain revealed it is in talks with HM Revenue & Customs over some of its bonus plans between 2003 and 2010, which used trusts to award shares to executives. Domino’s said changes in HMRC’s position on bonus plans and a tightened approach to national insurance contributions, through the Advanced Penalty Notice, had led the company “to view this area as one of increased risk”.
The company has said there will be “uncertainty” until HMRC confirms its position on the schemes, but added that current and former directors had provided the company with indemnities to cover any possible personal tax bill, the Sunday Times reported.
In February, Domino’s reported better than expected fourth quarter results, with reported revenue of $741.2m (£530.6m) during the quarter. Same-store sales growth grew 10.7 per cent over the same period. The company has been successful in recent years after embracing the digital shift to ordering food.