WPP 'May Return' if Tories Change Tax Laws

WPP's CEO Sir Martin Sorrell says the firm may return its tax domicile status back to the UK if a new government guarantees it will not subject overseas profits to UK tax. Since relocating 18 months ago, the firm has saved around £50m by avoiding tax on its 'foreign profits'.

Marcoms giant and Kantar-owner WPP moved its 'domicile' to Ireland in 2008 in protest at what it described as 'the current complexity' of the UK tax system.

The estimated savings of £50m come from avoiding paying tax on 'foreign profits', which make up nearly 90% of the Group's total revenue.

In an interview with Sky, Sorrell commented: 'If consultation resulted in certainty that overseas profits would not be taxed and legislation is enacted, and rates remained the same, we would move back.'

According to a report in the Financial Times, Sorrell's comments were welcomed by the Conservatives as a 'powerful' endorsement of their corporate tax policy, which pledges to only tax profits generated in Britain.

The Labour Government has launched a consultation aimed at giving companies more clarity on any likely changes to tax laws, in an attempt to persuade multinational firms that the UK remains a competitive place to locate.

Web sites: www.wpp.com and www.kantar.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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