The Confederation of British Industry has raised concerns about the UK's anti-competitive tax regime after Shire announced it would relocate to Ireland where tax rules are more favourable for business.
Richard Lambert, CBI Director-General, said: 'We are particularly worried that an uncompetitive corporate tax system is spoiling the UK's attractiveness as a place to do business, and that other internationally-mobile firms will follow Shire's path.'
FTSE 100-listed Shire, the third-largest pharmaceutical firm in the UK, is set to pay significantly less tax by becoming a tax resident in Ireland.
The company re-assured market concerns over the change of residency, saying the change would not affect Shire's UK operations or workforce. But this will mean a loss of income for the Treasury, the Telegraph reported.
A company statement said: 'Shire has concluded that its business and its shareholders would be better served by having an international holding company with a group structure that is designed to help protect the group's taxation position, and better facilitate the group's financial management.'
Further reading:
Shire quits UK for tax efficient Ireland
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