WPP confirms tax led relocation to Ireland
Wednesday, 1 October 2008
Source: AccountancyAge.com
WPP, the world's second-biggest advertising and marketing group, has confirmed it plans to move its official headquarters from Britain to Ireland because of punitive changes to the British tax regime.
A WPP spokesman told Reuters on Sunday the advertising giant was likely to issue a stock exchange announcement this week on its plans to change domicile.
The decision to move offshore will be a huge blow for the Treasury, particularly as Martin Sorrell, WPP chief executive, has acted as an ambassador for British business.
WPP, who paid ₤204m in UK taxes last year and conducts almost 90% of its business outside Britain, estimates the tax regime changes would add tens of millions to its British tax bill.
SG comment: This is quite a big deal for the Treasury as WPP do have such a high profile reputation in global marketing and advertising, and was worthy of a mention by David Cameron in his Conservative party conference speech today.
WPP, the world's second-biggest advertising and marketing group, has confirmed it plans to move its official headquarters from Britain to Ireland because of punitive changes to the British tax regime.
A WPP spokesman told Reuters on Sunday the advertising giant was likely to issue a stock exchange announcement this week on its plans to change domicile.
The decision to move offshore will be a huge blow for the Treasury, particularly as Martin Sorrell, WPP chief executive, has acted as an ambassador for British business.
WPP, who paid ₤204m in UK taxes last year and conducts almost 90% of its business outside Britain, estimates the tax regime changes would add tens of millions to its British tax bill.
SG comment: This is quite a big deal for the Treasury as WPP do have such a high profile reputation in global marketing and advertising, and was worthy of a mention by David Cameron in his Conservative party conference speech today.
Labels: company news, FTSE 100, tax rules, UK tax system
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