An article in The Independent reports criticism of United Business Media for its decision to move its base to the Republic of Ireland. Vincent Cable, the Liberal Democrats' spokesman on economic affairs, referred to this move as "blatant tax avoidance".
Has he not heard of the right to freedom of movement of capital? The reason for the move is immaterial, while the fact that the group earns between 75 and 85% of its profits (depending on whose analysis you accept) from overseas is very relevant. Why should a genuinely multi-national business put the interests of the treasury ahead of its shareholders' interests? There is no earthly reason I can think of.
Even Richard Murphy thinks this story is "a storm in a tea cup", and where tax planning is concerned, he is usually the one making mountains out of molehills - not that he can resist his usual mud-slinging, calling the company "an aggressive and litigious tax avoider". The litigation he refers to is a continuing dispute over the interpretation of the capital gains de=grouping provisions - hardly especially aggressive tax planning, but given the sloppy drafting of the legislation in question, well worth arguing if success will lead to an additional £80 million of value to shareholders.
