Advice to Directors
Gordon Brown risks a corporate exodus because of the high tax regime in Britain, a leading business organisation has warned.
Martin Temple, the chairman of the manufacturers group EEF, told the Financial Times: "There is a point whereby if you lose confidence in the system and it starts to become expensive, you start thinking about this [and] it becomes a boardroom agenda item ... We are absolutely on the edge of that."
Mr Temple added: “We are getting examples now of quite small companies that are moving to Ireland. I wouldn't say it's a major trend yet, but if we don't watch it, we'll get this (exodus). It is very dangerous territory.”
Last week the Treasury moved to try and head off concerns by launching a review into the tax system in the UK, but that may be too little too late, according to Mr Temple.
He said: “The question is will it be effective but fast enough to stop the thought processes that, frankly, started just after the pre Budget report?”
Companies Act 2006 - Even with the new wishy washy "enlightened shareholder value"clause Directors still have a duty to maximise success of the company by exercising independent judgment with skill, care and diligence otherwise they can be personally be liable.
Now if they are not aware that there are tax advantages available by shifting the boardroom and they don't consider them then they are in breech. Of course some directors may conclude continuing to based at the office is better than a monthly couple of days away in Dublin, but they must decide that at a board meeting. And if it annoys the rapacious bastards in charge here, good.