Britain will become a less desirable location for multinational businesses if the treasury outlaws the use of “mixer” companies to aggregate profits earned overseas before they are repatriated, reports the Financial Times.
The leader column points out that most industrial countries allow big corporations to save tax in such ways. It calls for an equitable settlement between the opposing factions. However, it adds that industry must accept there is a case for stopping the most obvious abuse of such vehicles for tax avoidance.
The newspaper says threats by some companies, such a Vodafone Air Touch, to move abroad and the treasury’s refusal to move on the issue have created a deadlock that must be broken.
The Guardian reports Vodafone’s claim that it stands to lose £500m if chancellor Gordon Brown sticks to his guns. Allied Domecq would also be hard hit, says The Times and might have to consider cutting its dividend.
Financial Times 08/06/00 page 20 (Leader)
The Guardian 08/06/00 page 26, page 27 (Notebook)
The Times 08/06/00 page 27
