Cap Gemini E&Y secures tax break
Results from consultancy firm Cap Gemini Ernst & Young show the group could enjoy tax breaks of nearly a billion pounds over the next 15 years.
Following the acquisition of the consultancy arm of Ernst & Young, a benefit could arise from the deductibility of goodwill amortisation in the US. The saving could mean savings of up to £60m a year for the French-owned company, the Financial Times reported.
In yesterday’s results the Cap Gemini reported a £86m net tax gain, which helped to boost its statement to a 76% increase in net profit.
The good results were, however, offset by the firm losing 25% of its staff because of uncertainty caused by the recent merger.