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koli
Doesn't have much of a life
Joined: Fri Apr 24, 2009 5:12 pm
Posts: 1171
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 | | | | Quote: Last year 45 foreign companies moved their global or regional headquarters to London, up from just 25 in 2009, data from research group FDI Markets show. Among the moves this year: General Electric Co.’s oil and gas unit, which is departing Florence, Italy, and Chinese developer ABP (China) Holdings Group Ltd., which is setting up its worldwide head office in London.
The U.K.’s base corporate rate is now 23 percent, down from 28 percent in 2010. By 2015, the rate will drop to about 20 percent, compared with about 29 percent in Germany and about 33 percent in France. The U.S. rate is 40 percent, though deductions mean few companies pay that amount. | | | | |
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| Sat Oct 19, 2013 10:01 am |
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jonbwfc
What's a life?
Joined: Thu Apr 23, 2009 7:26 pm
Posts: 17040
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Personally, I don't find the idea that the UK is turning into a tax haven all that inspirational.
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| Sat Oct 19, 2013 11:15 am |
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davrosG5
I haven't seen my friends in so long
Joined: Fri Apr 24, 2009 6:37 am
Posts: 6954
Location: Peebo
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This would be good news if I had any great confidence that companies relocating would be paying the tax on a good proportion of their income but somehow I doubt it.
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When they put teeth in your mouth, they spoiled a perfectly good bum.
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| Sat Oct 19, 2013 6:37 pm |
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hifidelity2
I haven't seen my friends in so long
Joined: Fri Apr 24, 2009 1:03 pm
Posts: 5041
Location: London
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still if they are relocating from overseas they will still pay some tax and if its a proper relocation will employ people who will pay tax
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| Sat Oct 19, 2013 8:24 pm |
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koli
Doesn't have much of a life
Joined: Fri Apr 24, 2009 5:12 pm
Posts: 1171
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I would like to add that this not only about lowered tax rates: So even when taxes are not the lowest, there are other reasons why this is a good place to do business.
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| Sat Oct 19, 2013 8:54 pm |
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jonbwfc
What's a life?
Joined: Thu Apr 23, 2009 7:26 pm
Posts: 17040
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It's marginal, I suspect. None of these head offices will employ tens of thousands of people. It's not like they're relocating a massive car factory, it's an office. A big office certainly, but still just that. Better than them not being there, certainly, but a drop in the bucket of the UK's finances. And of course it's also transitory. They're just as likely to move off somewhere else if they get offered a marginally lower tax rate. Relocating a factory full of machinery is hard, relocating a head office is easy. As Kohli says there are other benefits to being in the UK compared to most of the genuine tax havens- good telecoms etc - but nothing that can't be offered elsewhere. There's no long term guarantee those jobs will be maintained. So excuse me if I don't run around waving my arms in the air because of this. For 99.99% of the UK's population, it will make absolutely no difference at all.
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| Sat Oct 19, 2013 11:03 pm |
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Amnesia10
Legend
Joined: Fri Apr 24, 2009 2:02 am
Posts: 29240
Location: Guantanamo Bay (thanks bobbdobbs)
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There will be other reasons for the move for some companies. They may be coming from unstable parts of the world and many nations have immigration rules that allow people to move here if they create jobs etc. Then there is the law courts which are great for divorce settlements and then there is the cultural benefits. It will probably be a number of these that helped make the decision.
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| Sun Oct 20, 2013 3:11 am |
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ShockWaffle
Doesn't have much of a life
Joined: Sat Apr 25, 2009 6:50 am
Posts: 1911
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International relocation decided by the availability of great divorce courts. That's one of your sanest suggestions yet.
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| Sun Oct 20, 2013 5:04 am |
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