CONCERNS Wightlink has not paid any corporation tax – despite chalking up profits of almost £22 million last year and paying shareholders £14 million – have been raised by an MP.

Bob Seely, MP for the Isle of Wight, who has called on the ferry companies to provide a ‘public service’ to islanders, has written to Wightlink chief executive, Keith Greenfield, asking questions about its corporate structure and offshore holdings.

Wightlink’s annual report reveals it has not paid any UK corporation tax on its profits in the past two years.

Although there are a number of possible explanations for this – companies are entitled to offset significant investments against their tax bill, for example, and Wightlink spent £45 million on its new Victoria of Wight ferry – Mr Greenfield declined to offer any such explanation when contacted by the County Press.

Mr Seely said in his letter, copied to treasury and transport ministers: “Wightlink appears to pay no tax on its earnings. Equally, the holding companies do not seem to pay any tax either.

“Wightlink appears to be making a good profit paying shareholders — a dividend of £14 million.

“When would Wightlink or its shareholders expect to start paying UK tax on its earnings?

“Wightlink’s immediate holding company, Arca Top Co, while registered in the UK, is controlled from Luxembourg and its parent company is registered in Guernsey.

“If this is correct, why is Wightlink’s corporate structure offshore? Has this structure been put in place to minimise tax liabilities?

“What benefit is there for the island in this arrangement? What benefit is there for the UK taxpayer?”

In response, a Wightlink spokesperson said: “We have received Mr Seely’s letter and will respond in due course.”

Following news Mayfair Equity Partners, the firm behind Yo Sushi restaurants, was planning a takeover of Wightlink, Mr Seely said he would not support its sale to another ‘asset sweating’ company.

Sky News reported this week Mayfair was one of a small number of bidders in talks about a deal.

As previously reported, Wightlink could be sold for £300 million — significantly more than the rumoured £230 million current owner Basalt Infrastructure Partners paid three years ago, when it bought the firm from Australian bank Macquarie. According to Sky News, the sale could be agreed in the coming weeks, although more likely early next year.

Mr Seely has called on the government to ensure a public-service obligation is included in any deal — which could include forcing the ferry company to run extra services at cheaper fares.