E-Malt.com News article: United Kingdom: Diageo might move out of UK forced by corporate tax changes
Paul Walsh, the Chief Executive of drinks giant Diageo PLC, said he wouldn't rule out moving the company out of the U.K., although he hoped it wouldn't be necessary, Dow Jones communicated on December, 16.
Recent U.K. corporate tax changes meaning companies have to pay more tax even if they have the bulk of their operations outside the U.K. have already prompted the likes of advertiser WPP Group PLC and pharmaceutical company Shire Pharmaceuticals PLC to move to Ireland.
"The way to stop it happening is to have a competitive tax regime and what has happened (in the U.K.) is not competitive," Walsh said.
Walsh said Diageo looks at all its options and a move abroad is "certainly plausible, but I hope it doesn't happen."
18 December, 2009