The European headquarters of the Japanese electronics company Panasonic would be moved away from the UK to Amsterdam in October because of Brexit concerns.
Panasonic Europe’s chief executive Laurent Abadie said that the main aim of the move is to bypass any potential tax issues that which could crop up in relation to the UK’s decision to leave the EU.
There are a number of multinationals with their European headquarters in the UK have already announced that they would be moving out of the country and take jobs with them even as the March 2019 for Brexit deadline approaches.
A number of financial companies form Japan also have already announced their intention of shifting their EU bases into the European continent from London.
Abadie told the Nikkei Asian Review newspaper that there were concerns within the company that the UK might be started to be considered as a tax haven by Japan if there are cuts in corporate taxes for attracting and keeping companies back in the country and this drove the decision of Panasonic to shift its European headquarters from London to Amsterdam.
Panasonic could become liable to cough up more taxes in Japan if indeed it ended up paying lowers taxes in the UK.
It has been 15 months that Panasonic had been considering the move which were clouded by concerns relating to Brexit such as access to free flow of goods and people, Abadie told the Nikkei Asian Review.
Later, an official statement was issued by Panasonic Europe announcing its decision of shifting its its European headquarters to Amsterdam from Bracknell in the UK starting 1 October.
Among the several reasons for this shift was “improved efficiency and cost competitiveness”, the company said.
It said “fewer than approximately 10” people would be affected out of a staff of 30.
“No Panasonic UK business operations will be affected by the EU headquarters move,” the statement added.
to encourage businesses to continue investing in the UK after the Brexit referendum, the UK government announced its pledge to cut corporate tax in 2016.
The UK and the European Union are yet to strike a Brexit deal on the terms and conditions of the exit despite the fact that the referendum to leave the Eu was completed in the UK in 2016.
Japan is amongst the biggest investors in the UK and there are over 800 Japanese companies operational in the country which employs more than 100,000 people.
However, financial firms including Nomura, Sumitomo Mitsui and Daiwa have already announced that they will no longer retain their EU headquarters in London.
(Adapted from BBC.com)