TaxCorporate TaxGSK: tax rules must be ‘favourable’

GSK: tax rules must be 'favourable'

Outgoing chief executive fires shot across government's bows over foreign profits rules changes

Jean-Pierre Garnier, the outgoing chief executive of GlaxoSmithKline (GSK),
has said the government’s tax environment has to be ‘favourable’ to retain the
best jobs in the UK.

Garnier’s comments come after Shire, the pharmaceuticals group, opted to set
up a holding company tax resident in Ireland to protect it from forthcoming
changes to foreign profits taxation.

‘We value our roots in the UK, but the business environment has to be
realistic and favourable so that it doesn’t impair our ability to compete
globally,’
The
Times
reported Garnier as saying.

Garnier, who serves on the Prime Minister’s International Business Advisory
Council, added: ‘Any tax change in a country has to take into account the fact
that other countries are trying to attract our best jobs and I am confident that
the Government will do what’s right for the country. I am convinced that this
Government is listening hard to business and I know Mr Brown is very conscious
of the need to compete globally.’

Further Reading:

Read
The Times story

Tax
Hack: ‘Two or three’ companies to follow Shire offshore

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