Replies to post #307347 on $Stock*Shop*Charts*News*Option$

[Stock Lobster]

SKY: Guinness Owner Fires Warning Shot On UK Tax

5:02pm UK, Thursday February 11, 2010
Ed Merrison, Sky News Online

The boss of Diageo has told Sky News the drinks giant will consider walking away from Britain if future tax rises make it a less attractive base for its business.

Chief executive Paul Walsh said the company, which owns brands such as Guinness and Smirnoff, said it would be forced to reassess its options if the system became any less favourable from an individual or corporate viewpoint.

"We enjoy operating out of London; it's got many advantages," Mr Walsh told Sky.

"However, if the UK, either from a corporate perspective or a personal tax perspective, becomes uncompetitive, we will be forced to look at alternatives.

"We are a global business, we operate in 180 countries around the world - our location here in London should not be taken for granted."

Sky News City editor Mark Kleinman recently revealed that Diageo had resisted Switzerland's aggressive attempt to lure it away from London by offering exceptionally low tax rates for the company and its top executives.

Mr Walsh's latest comments came after Unilever boss Paul Polson told a newspaper that it would be "unfortunate for the UK" if additional tax or regulation were to further hamper the consumer goods giant's business.

"We do have choices where we put research laboratories, choices for manufacturing facilities and choices where we put our senior management," Mr Polson told the Daily Mail.

"Right now we're happy with the choices we've made, but any responsible businessman needs to continue to assess that within an ever-changing global environment."

Mr Walsh's warning to UK authorities came as the firm posted its half-year results, unveiling a 10% fall in post-tax profits.
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"We are a global business, we operate in 180 countries around the world - our location here in London should not be taken for granted."

Paul Walsh, Diageo chief executive

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The chief executive described it as a "tale of two quarters", with an encouraging end to the year, especially in the UK where its beer, wine and spirits all gained market share.

The 2% rise in second-quarter sales led Mr Walsh to declare the company to be "in the early stages of recovery".

"I think the critical challenge (for 2010) is around consumer expenditure," he told Sky.

"You have to have reasonable GDP - that puts money in people's pockets - but you also need a degree of confidence, and that is what we've seen lacking in certain European markets.

"In the guidance we're offering, we're not seeing any snap back in that regard but that's what it's going to take long term to get Europe back in growth."

http://news.sky.com/skynews/Home/Business/Guinness-Owner-Diageo-Warns-Over-UK-Tax-Boss-Paul-Walsh-Says-Firms-Location-In-London-Not-A-Given/Article/201002215546900?lpos=Business_First_Home_Article_Teaser_Region_5&lid=ARTICLE_15546900_Guinness_Owner_Diageo_Warns_Over_UK_Tax%3A_Boss_Paul_Walsh_Says_Firms_Location_In_London_Not_A_Given

[Stock Lobster]

5/09: Hands and Odey to quit UK over tax

The UK economy faces further defections due to the introduction of the higher tax rates in the Budget as private equity boss Guy Hands and hedge fund chief Crispin Odey became the latest financiers to be linked with moves offshore

By Jonathan Russell
Published: 7:56PM BST 10 May 2009
UK Telegraph

Reports this weekend suggested that Mr Hands, whose group Terra Firma owns music company EMI, had already moved to Guernsey, while Mr Odey of Odey Asset Management was considering abandoning Britain. Both object to the increase in the top rate of income tax to 50pc. Mr Hands' move makes him the most high-profile City executive to leave.

Last month it emerged that Hugh Osmond, the entrepreneur, and Peter Hargreaves, founder of Hargreaves Lansdowne, were considering leaving. Many City professionals are as concerned about changes to European law affecting hedge funds and private equity firms as about tax changes.

Although many leading City figures have threatened to go offshore, Mr Hands, who is thought to have moved a few weeks ago, is among the first actually to make the move.

http://www.telegraph.co.uk/finance/financetopics/budget/5304832/Hands-and-Odey-to-quit-UK-over-tax.html