Cadbury's new owner Kraft Foods plans to move part of its business to Switzerland in a move which could cut its UK tax bill.
By switching a few key roles to Zurich the US food giant is expected to pay less corporation tax, depriving the exchequer of millions of pounds, the BBC reports.
UK corporation tax is levied at 28% while rates at Kraft's European headquarters in Zurich begin at 15%.
Kraft said most UK-based jobs would remain, as it integrated the Birmingham chocolate firm into its European model.
The Cadbury takeover earlier this year was one of the most controversial of a British firm, and it raised issues about foreign ownership of UK assets and the job security of British workers.