Going, Going, Gone: Why Brits Are Bound for Greener Tax Pastures
In the last 48 hours several news dispatches from the U.K. indicate that many wealthy British citizens are joining the exodus of expats.A leading attorney in Manchester said there’s "a huge low tax incentive for people with English connections to make Switzerland the center of their operations."He said Switzerland is drawing British because "...Switzerland is seen as having more muscle power, saying we'll carry on doing things our way, as they have done for centuries." In other words, Switzerland has kept its tradition for Swiss bank secrecy – no matter what. Meanwhile, the venerable Henderson Asset Management group in London has been headquartered in Britain for 74 years. The company’s spokespeople just announced they’re moving to Ireland. If the company stayed in London, it would be forced to pay the standard U.K. corporation tax rate of 28%. In Ireland, the corporation tax is only 12.5%. By moving its headquarters to Dublin, Henderson’s foreign profits are charged at the Irish rate rather than the full U.K. rate, saving the company about £8.5 million (US$15.1 million) a year.Henderson’s departure was the first of a mini-exodus last week. Charter, a major engineering group that can trace its roots back almost a century, said it was leaving London too, followed by Regus, the office service specialist.We can’t blame them. We libertarian free spirits at The Sovereign Society love tax competition among nations.Face it – taxes are just another cost of doing business, personally or commercially. So we believe you should have the right to choose to pay the least amount of taxes possible. That can involve moving to a country that imposes no, or lower taxes. For example, it’s downright insane to do business in socialist Germany, where 50% of your income is confiscated by taxes. If you picked up and moved to Ireland, Luxembourg or some other tax haven, you could have low or no taxes. And you and I ultimately pay the price for these high corporate taxes – by paying higher premiums for food and other items.But the tax hungry politicians just don’t seem to get it. It’s the high taxes that drive out good businesses and destroy jobs. Compare this tax stupidity with the "Irish Miracle" where low taxes have transformed a formerly impoverished nation into one of the most prosperous in the European Union.In this age of globalization and instant electronic financial activity, modern communications and transport links, you can move your business anywhere. And more importantly, you should go where taxes are lowest.
In the last 48 hours several news dispatches from the U.K. indicate that many wealthy British citizens are joining the exodus of expats.A leading attorney in Manchester said there’s "a huge low tax incentive for people with English connections to make Switzerland the center of their operations."He said Switzerland is drawing British because "...Switzerland is seen as having more muscle power, saying we'll carry on doing things our way, as they have done for centuries." In other words, Switzerland has kept its tradition for Swiss bank secrecy – no matter what. Meanwhile, the venerable Henderson Asset Management group in London has been headquartered in Britain for 74 years. The company’s spokespeople just announced they’re moving to Ireland. If the company stayed in London, it would be forced to pay the standard U.K. corporation tax rate of 28%. In Ireland, the corporation tax is only 12.5%. By moving its headquarters to Dublin, Henderson’s foreign profits are charged at the Irish rate rather than the full U.K. rate, saving the company about £8.5 million (US$15.1 million) a year.Henderson’s departure was the first of a mini-exodus last week. Charter, a major engineering group that can trace its roots back almost a century, said it was leaving London too, followed by Regus, the office service specialist.We can’t blame them. We libertarian free spirits at The Sovereign Society love tax competition among nations.Face it – taxes are just another cost of doing business, personally or commercially. So we believe you should have the right to choose to pay the least amount of taxes possible. That can involve moving to a country that imposes no, or lower taxes. For example, it’s downright insane to do business in socialist Germany, where 50% of your income is confiscated by taxes. If you picked up and moved to Ireland, Luxembourg or some other tax haven, you could have low or no taxes. And you and I ultimately pay the price for these high corporate taxes – by paying higher premiums for food and other items.But the tax hungry politicians just don’t seem to get it. It’s the high taxes that drive out good businesses and destroy jobs. Compare this tax stupidity with the "Irish Miracle" where low taxes have transformed a formerly impoverished nation into one of the most prosperous in the European Union.In this age of globalization and instant electronic financial activity, modern communications and transport links, you can move your business anywhere. And more importantly, you should go where taxes are lowest.
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