Earlier Today, Thursday, August 30, a spokeswoman of Panasonic said that the company has held advanced talks for moving its European headquarters from Britain to the Netherlands within the next couple of months amidst concerns about potential tax issues related to Brexit.
Along with confirming a report in the Nikkei business daily about the Japanese electronics giants plans, the spokeswoman told AFP, “We will move our European headquarters to the Netherlands.”
The spokeswoman further revealed that this decision was ignited due to concerns that Japan could treat Britain as a tax haven following Brexit if London decides to lower its corporate tax rate in order to attract businesses.
According to Laurent Abadie, CEO of Panasonic Europe, he told the Nikkei that Panasonic will move its headquarters from outside London to Amsterdam in October 2018.
If the designation has been made by Japan, back Taxes levied by Tokyo would be eligible on Panasonic.
Furthermore, Abadie also told the newspaper that this move has been discussed internally by Panasonic for the past 15 months.
He also said, “The fact that Brexit could also become a barrier to the flow of people and goods was also a factor in the decision to move.”
According to the Nikkei, From the total 20 to 30 people in the London office, nearly 10 to 20 employees handling financial and auditing operations would move. However, Investor relations staff will stay put.
As per reports, Britain is all set to leave the EU in March 2019, in the move that has raised tremendous uncertainty in the business sector while also raising concerns of the consequences it will have on the country’s economy.
Notably, Panasonic is not the only Japanese company to move its headquarters in recent times as Several Japanese firms including Nomura Holdings, megabank MUFG, Sumitomo Mitsui Financial Group and Daiwa Securities have also announced plans of moving their main EU bases out of London.