Recent British fashion designer Vivienne Westwood’s company accounts show that her main UK business is paying £2 million a year to a company set up in Luxembourg for the right to use her name on her own fashion label.
In 2013, the UK company registered an operating profit of £3.2 million and a corporation tax bill on that of £780,000. By paying her Luxembourg company £2 million, the UK company saved £500,000 in taxes.
The company stated that its Vivienne Westwood Limited (a UK company) is part of an independent international group of companies. Latimo SA is the holding company of this group. The Luxembourg company is the owner of the Vivienne Westwood trademarks worldwide. Latimo SA pursuant to a Licence Agreement receives regular royalties. All the companies belonging to the group pay all the required taxes in all the countries in which they operate, in accordance to audited financial statements. In the UK, Vivienne Westwood Limited paid £780,228 of taxes in 2013 and £1,250,858 of taxes in 2012.
The Board of Directors decided to invest profits in the structure and in the international development of the company.