The UK’s frozen food retailer, Iceland, was hit by the tax man after it spent £4 million for a trip to Disney World in Florida.
The company had treated 800 of its managers to a five-day trip which took in Universal Studios and the Kennedy Space Centre as well as the Disney attraction.
While the trip took place in 2009, Iceland has finally settled the outstanding bill of £2.5 million which HMRC demanded, saying the trip was a “benefit in kind”.
Iceland’s founder, Malcolm Walker, claimed it was “a nit-picking attack on fun” but argued about the investment value of the trip rather than the entertainment value, and the fact that it was designed to boost morale.
Walker believes that Iceland staff would learn from Disney’s customer service.
Rather than being put off by the tax demand, Walker says Iceland is taking its managers to Dubai this year.
