TaxAdministrationFears of US backlash to govt tax changes

Fears of US backlash to govt tax changes

Govt’s tax rises on corporate foreign earnings could damage Britain’s appeal as a gateway to EU for US companies

A leading partner in a major tax firm warned US companies seeking to set up
European headquarters were increasingly uncomfortable with Britain’s tax regime
and were considering other bases such as Ireland and the Netherlands,

He told The Daily Telegraph that, while UK companies such as Shire
Pharmaceuticals were in the spotlight for announcing its move to Ireland, a
number of US companies were ‘diverting already’.

Other leading tax experts said UK companies were increasingly expressing
fears about the proposed legislative changes. Bill Dodwell,
Deloitte
head of tax policy, said: ‘It has moved rapidly up the boardroom agenda.’

John Whiting, a
PricewaterhouseCoopers
partner, said the potential losses to the government from firms relocating their
tax domiciles were substantial –corporation tax alone contributed about £50bn or
9% of total government revenues.

Further reading:

GlaxoSmithKline turnaround on quitting UK

Read
The Daily Telegraph story

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