THE TREASURY is reported this morning to have been in talks with advertising and maketing giant WPP about returning its tax base to the UK.
The Daily Telegraph claims that disucussions have been under way for six months and centre on a reformed 'controlled foreign companies' (CFC) regime that would make it more attractive for WPP to be back in Britain.
Two things: first leaving the UK is not all its cracked up to be.
Second, moving to Jersey is a bad move. The promise of zero tax has not held up. With the EU saying Jersey's zero / ten regime is illegal moving back to the UK looks all the more attractive, no doubt. An uncertain tax future was hardly the promise WPP were looking for.
Which proves two things. First those leaving made a big mistake, and second Jersey is incapable of delivering on its promises. A double whammy!
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Hi Richard,
WPP is incorporated in Jersey, but its tax domicile is in Ireland. Isn’t that right? Not passing comment, just wanted to make sure I had that right.
surely it proves a third thing…that being resident in Jersey is just a sham as if and when they ‘move back’ there will be no actual physical movement of people or objects or change to the business.
@Ralph
Yes – right