Wednesday, 14 November 2012

John Lewis MD gets it

Andy Street, MD of John Lewis was on Sky News today:
Mr Street said: "If you actually improve your business by investing ... you have got less money to invest if you are giving 27% of your profits to the Exchequer than, clearly, if you are domiciled in a tax haven and you've got much more.
Ignoring that just because another country has a lower tax rate than us doesn't make it a tax haven, he has a point; too great a percentage of a companies profits end up in the pocket of the taxman compared to some of our buddies in the Single Market/EEA/EFTA. So when your next door neighbour offers all the benefits that you do (English-speaking skilled, educated workforce, stable(ish), credible currency, located in a time zone conducive to international business, decent infrastructure) but with a corporation tax rate of almost half of yours, where do you think that the multinational setting up a European HQ is going to put it?

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