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About In House Tax

About In House Tax

This weblog is a news and views site for tax professionals within the UK and international in-house tax community.  You will find information about appointments and people moves in and around the in-house tax market, issues affecting the in-house tax professional, opinions on the state of the tax job market, updates on tax technology, and other general thoughts of the day.

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Location: St Albans, United Kingdom

This site has been developed by Simon Godley, who also runs the niche tax recruitment company Talentpool Selection . Simon spends a lot of his time placing tax specialists into FTSE companies, large in-bound groups and some professional services organisations. He also recruits and is well networked around the UK tax technology and VAT markets.

Tax News

WPP take view on UK tax system issue

Wednesday, 7 May 2008

Source: www.tax-news.com

As if Chancellor of the Exchequer Alistair Darling didn't have enough on his plate with the ongoing credit crunch, it has emerged that yet another FTSE100 firm is considering switching its corporate HQ abroad in protest at the UK's increasingly burdensome corporate tax regime.

Sir Martin Sorrel, head of WPP - the world's second largest advertising firm - told the BBC on Monday that if the Treasury introduced proposed rules to tax dividends earned by companies overseas in the UK, it could tip the balance in favour of relocating the firm's tax residence to a jurisdiction which does not tax such income, with Ireland likely to be top of the list.

"If the measures as is are introduced, ratified, confirmed and implemented, we will be taking a very serious look at the advantages and disadvantages [of moving its tax domicile and headquarters]," Sorrel was quoted as saying.

Sorrel's comments come hot on the heels of decisions by Shire Pharmaceuticals and United Business Media to set up holding companies in Jersey and relocate their corporate HQs to Ireland to cut their UK tax bills.

He went on to point out that WPP already pays a significant sum in tax to the Treasury each year - about GBP200mn (USD394mn) - and the proposed new rules could add tens of millions of pounds to the company's annual tax bill in the UK.

"We are talking about very very significant sums of money," he noted.

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posted by Simon Godley

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