Diageo Sees Staying In UK As Best Option

[John]

Following recent rumours that Diageo may leave the UK the Whisky giant said yesterday it saw many advantages to being a British domiciled company.

It added, however, that the UK Government should take steps to improve the country's reputation as a place for doing business.

The comments came from a Diageo spokesman after reports it had been invited by the Swiss canton of Zug to relocate its corporate headquarters away from London.

Diageo, whose brands also include Guinness, Smirnoff vodka, and Bailey's Irish cream liqueur plus a host of other whiskies, was allegedly told up to 200 of its top executives would be exempt from paying income tax.

It is thought the company has no plans to accept the proposal, which reportedly also involves corporation tax of less than 10%.

Other major UK companies are thought to have been offered similar deals by Zug in recent months.

In December, Diageo chief executive Paul Walsh said he would not rule out the possibility of a relocation, saying the company was looking at all options.

Several blue-chip companies have voiced concerns about the UK corporate tax burden, with some having already moved their HQs.

Diageo's spokesman said: "We see many advantages to remaining a British domiciled company, but have also made clear time and again that it is important the government takes steps to ensure this country remains and develops its position as a competitive place to do business."?

John

[Calder]

Best option for the present time. I would think this decision has a lot to do with Euro not doing so well at present and not likely to improve much given the current problems in the likes of Greece and Spain.