Wallpaper company Osborne & Little has insisted it paid "all taxes due in full" after its accounts came under scrutiny when it emerged the Chancellor received dividends from the family firm despite it paying no corporation tax for seven years.
The company's accounts show it made more than £1.4 million in profits over the past two years after notching up annual sales of £34 million.
George Osborne received £44,647 in the form of dividends in 2014/15 from the business that was co-founded by his father, Sir Peter Osborne.
Osborne & Little saw profits rise 1.4% to £722,000 in the year to the end of March 2015, up from £712,000 the year before.
Read more: Osborne & Little made £1.4m profits in two years
Its UK sales dropped 2% to £8 million in 2014/15, although the US - its largest market, accounting for 47% of overall turnover - saw sales rise 7% to £16.1 million, or 11% higher with currency exchange stripped out.
Its results from 2013/14 confirm the firm would be able to offset £599,000 against taxable income in future years, while accounts show Osborne & Little posted losses for four of the past seven years.
They also confirm that the company paid out dividends worth £335,000 to shareholders, which includes the Chancellor, on May 30 2014.
Osborne & Little, which has its head office in London, reported losses of £746,000 for the year to the end of March 2013, which followed on from losses of £268,000 for 2011/12 and £386,000 in 2010/11.
The group reported a profit of £161,000 in 2009/10, though the year before it saw losses of £1.7 million.
But its filings show sales remaining largely static over the past few years, at around £33 million to £34 million.
A spokesman for Osborne & Little said: "Osborne & Little, a family business that manufactures wallpaper and furnishings, and the family trust that holds shares in it, are resident in the UK, have had no offshore holdings and have always paid all taxes due in full. Last year the company paid its first dividend to shareholders in many years."
Sir Peter and his brother-in-law, Anthony Little, founded the company, selling hand-printed wallpaper, in 1968. It currently has 195 employees.
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