Morrisons is to keep paying corporation tax and will not be run from a Cayman Islands tax haven, its incoming chairman has said.
Sir Terry Leahy, who managed Tesco for 14 years, made the claim in response to a letter from an MP.
Morrisons was auctioned off to private equity firm Clayton, Dubilier & Rice (CD&R) for £7 billion earlier this month.
However, politicians were outraged at rumours that the buyer planned to operate the supermarket through a Cayman Islands shell company.
The British overseas territory charges a corporate tax rate of zero.
The head of the Commons’ business committee condemned the “insult to British taxpayers,” while Conservative MP Kevin Hollinrake said he would write to Leahy, who advises to CD&R.
In a response this week, Leahy pledged: “Morrisons will continue to pay its taxes in the UK.
“It will remain a British business, registered and headquartered in the UK, and CD&R ownership will not change that position.”
The buyout firm has previously insisted that its Cayman Islands vehicle was intended just to pay for the deal.
It comes ahead of the Morrisons shareholder vote on October 19, which is expected to confirm CD&R’s takeover.
Writing on Twitter, Hollinrake said that Leahy’s assurances were “welcome”.
Asda, a Big 4 rival of Morrisons, is run from a Jersey tax haven by the billionaire Issa brothers.