WPP eyes return to Britain as government cuts tax

24th March 2011, Comments 0 comments

WPP, the world's largest advertiser, could move its headquarters back to Britain after the government cut tax on company profits in its annual budget, its chief executive Martin Sorrell said Thursday.

Sorrell, speaking on BBC radio, said he would recommend to the board and shareholders that WPP switches its tax base from Ireland, one day after the budget proposed a bigger-than-expected reduction in Britain's corporation tax.

"I think it looks as though we will make that recommendation," Sorrell said.

WPP moved its headquarters from Britain to Ireland in 2008, citing uncertainties over the former's corporate tax regime, particularly rules on taxing profits earned overseas by British businesses.

In his budget on Wednesday, British finance minister George Osborne said the coalition government would push ahead with new rules on the taxation of foreign profits, adding that it would deepen plans to cut Britain's corporation tax.

Chancellor of the Exchequer Osborne said the corporation tax rate would be cut to 23 percent by 2014 from 28 percent at present.

Previously, the government had planned to cut the rate to 24 percent by 2014. Ireland's corporation tax rate is only 12.5 percent.

-- Dow Jones Newswires contributed to this story --

© 2011 AFP

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