22 May 2008 - 15:52Tax Row Results in Max Exodus

Following the ongoing debate over non-doms and CGT, the government has been told that it potentially faces a mass exodus of businesses moving to lower tax regimes. Unhappy firms have been waiting eagerly to move, last month Shire announced a move to Ireland, benefiting from the countries corporation tax which is only 12.5% compared to the UK’s 28%! Other companies that have decided to move or are considering include: United Business, advertising giant WPP, fund group Aberdeen Asset Management and Brit Insurance, with the latter saying the reason being was high corporation tax and the Treasury’s recent proposals for taking foreign profits.

Do you think increasing tax acts as an incentive to leave a country, or do you think people and businesses are too reluctant to move? A number of economists actually believe that reducing the tax rate will increase tax revenue. What are your thoughts?