Asda received a £115m rebate from its US parent which boosted profits but lifted its tax bill, according to figures filed at Companies House.
The accounts showed it received a refund on the royalty it pays to Walmart of £114.9m.
Asda said in the accounts: “These changes include revisions to royalties charged in previous years, which has resulted in the company recognising a reduction of royalties for prior years of £114.9m in these financial statements, and accordingly a net increase in the tax liability and tax charge.”
It said the royalty charge was a tax-allowable expense to Asda, and an equal and opposite taxable income to Walmart, and therefore was tax neutral across the Walmart group.
It said it did not expect the one-off to recur.
The refund helped lift Asda’s pre-tax profits more than 50% from £520.4m to £798.7m. It was also boosted by the absence of a charge related to stock options the year earlier. Asda said that, excluding these two items, profits rose ahead of sales.
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