Originally Posted by Kiteview:
“It probably is down to the Brexit vote.
Now that the EU is investigating them, they move here in the expectation that we'll end up outside the EU as a giant offshore tax haven.”
That's quite correct. This article is a very interesting read, as the EU plans to implement 2 new policies, that makes the UK, a place to evade the EU. It's really the EU's own doing.
Quote:
“There are also two significant pieces of legislation on the near horizon which are focusing multinational minds.
The first is a clampdown on Base Erosion and Profit Shifting or "BEPS" for short. It is a tax avoidance strategy where profits are artificially shifted within companies from jurisdictions that have high taxes to jurisdictions that have low or in some cases no taxes. It's designed to keep profits in the country where they were REALLY generated.
The second is country-by-country reporting. This will force companies to list all profits and taxes paid in every country in which the company has a presence. This will make it almost impossible for companies and countries to strike secret deals, as they will be visible to other governments who might scream blue murder.
The tax heat is being turned up all over Europe and McDonald's has decided to flip before it gets flame grilled by authorities and public opinion.”
http://www.bbc.co.uk/news/business-38255087
Plus the UK has one of the lowest corporation taxes in the world, which will draw businesses in. People may argue, why not Ireland? The BBC article goes on to explain that too, that companies could end up like Apple, and faced with a court battle over paying the Irish government.
Quote:
“After the furore over Apple's tax affairs - the so called "double Irish" deal that saw Apple pay minimal taxes on billions of international profits - and the move by the EU to force Ireland to collect €13bn in back taxes (currently under appeal) - it could be argued that a move to Ireland is not keeping your head down.”
With McDonald's move, this could be the first of many companies. Not that it's a good thing to avoid taxes, but it's clearly a competitive edge to gain business. People also forget, that it's a global economy, and the EU is too inflexible to see that. The way I see it, is that the UK can give way better deals in the future, that the EU can't due to their restrictions and trying to keep everyone equal. This itself is preventing members to compete with countries outside the EU.