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.’
Does Darwin's theory apply to taxation? Colin ponders...
The UK tax gap fell in 2014-15 to its lowest-ever level of 6.5%, revealed official statistics published today
Changes to the tax system is urged to support the growth of entrepreneurs, found a report from the Grant Thornton UK, the Institute of Directors, and the Prelude Group
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states