GSK denies wrongdoing allegations in BBC tax report

GSK plc has issued a statement refuting claims of tax avoidance and wrongdoing presented in a BBC Panorama program broadcast on Monday, May 14, 2012. The program focused on the company's corporation tax payments in the UK and Luxembourg.

The pharmaceutical giant expressed significant disappointment with the broadcast, stating it was "extremely misleading and lacking in context." According to GSK, the program's "selective use of facts" resulted in a misrepresentation of the company's actions and failed to acknowledge its substantial tax contributions to the UK.

GSK strongly denied any wrongdoing, asserting that it proactively disclosed its tax transactions to the relevant authorities. The company confirmed that both UK and Luxembourg tax authorities have agreed that GSK paid all taxes due.

While 95% of GSK's sales occur outside the UK, the company stated that 20% of its tax bill is paid within the UK. Over the period covered by the broadcast, GSK paid approximately £1 billion in UK corporation and business taxes, an additional £1.3 billion through employee income taxes, and supports new UK tax rules for overseas earnings despite potential increases to its tax liability.