| |
Sorrell Delays Tax Return to UK
WPP Chief Exec Sir Martin Sorrrell has told the UK government that its proposed tax reforms do not go far enough to lure his business back from Ireland to its original UK headquarters.
 Sorrell moved WPP's tax base from London to Dublin in September 2008, in a bid to avoid paying tax on its 'foreign profits'. More than 85% of the group's revenue - which totalled £7.170 billion for the first nine months of this year - is currently generated outside the UK.
In the run-up to last year's UK general election, long-standing Conservative party supporter Sorrell signalled that he would consider moving the firm back if the Tories won the election and implemented a system that only taxed profits generated in the UK.
As soon as the Tory/Lib-Dem coalition took office, Chancellor George Osborne began to woo Sorrell with a promise of 'reformed' tax rules, and in the spring Budget, Osborne lowered the UK's corporation tax to 26% and announced plans for an 'ultra-low' rate of 5.75% tax on overseas financing income by 2014.
However, commenting on Osborne's draft finance bill, which was published yesterday, Sorrell said it does not go far enough for him to move WPP back to London.
'It's very much in the right direction but not quite far enough in our case. We're assessing what more needs to be done and the Treasury is being very responsive,' Sorrell told newspaper City AM.
On the back of WPP's 28% rise in 2010 pre-taxprofits, Sorrell's 2011 pay package rose 70% to around £4.5m.
Web site: www.wpp.com .
|
