business

Panasonic to move UK headquarters on Brexit fears

25 Comments
By Kazuhiro Nogi

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25 Comments
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Brexit, an idea worthy of Nigel Farage and Boris Johnson. The writing is on the wall, but the Tories are illiterate.

9 ( +15 / -6 )

Note, it's not the EU HQ, but their entire European HQ... A kick in the groin for the Brexiteers, I hope more will come.

4 ( +11 / -7 )

The re-location of 20 - 30 staff will have minimal impact, and there is plenty more electronic companies to choose from.

I don't really think that it will be noticed by most people.

-4 ( +6 / -10 )

around 10 to 20 employees dealing with auditing and financial operations would move

In the great run of things, that is not very many

-5 ( +4 / -9 )

Panasonic plans to move its European headquarters from Britain to the Netherlands later this year over concerns about potential tax issues related to Brexit, a company spokeswoman said Thursday.

Ganbare EU !

A great day for EU continental business and more to come !

-1 ( +6 / -7 )

Irrational over reaction. But what else can one expect.

-8 ( +3 / -11 )

The reality is that while the psychological impact of a small business leaving will hurt a little, the actual physical impact will be much less. Yes Panasonic is a large multinational company and the removal of their flagship Europe office from London is a blow, but the bigger picture is, that this will not send shockwaves through the business community in London.20 - 30 employees is hardly an exodus of skilled staff and its worth remembering that Panasonic has its own financial troubles still and this is probably driven more by rates and rents than Brexit as a whole. With investments from other large, more stable, Japanese and international brands continuing to invest in the UK regardless, I doubt the British government is to bothered.

-2 ( +2 / -4 )

The Brexit thingy is really a big yawn just like the Y2K bug. I'll bet the EU will give Britain an extension for another couple of years, there will be an election by then and a new government who will get in on the promise of a "vote" to stay in the Union.

0 ( +1 / -1 )

One of the biggest issue re Brexit is that most London-based businesses have become dependent on their highly-educated/qualified/talented Western European staff. If they keep paying top dollar, they'll stay, otherwise they'll go back to the mainland. And they won't be replaced by Brits (numerically perhaps, but not 'qualitatively').

Without their best German, French, Italian, Dutch, Scandinavian etc employees, UK biz will/would be much, much less competitive.

1 ( +2 / -1 )

I wish my company would transfer me to Amsterdam! Not sure I'd be very productive, though!

2 ( +2 / -0 )

I am not English but jumping ship so fast is ........................

2 ( +2 / -0 )

Cosmos1:

I'm for the EU - it just needs to be a proper federalized democratic govt. That being said, isn't it dishonest to not follow through on the EU referendum and, after a few years, see if the UK wants back in (preferably after federalizing itself so scottish and Welsh votes are counted equal with English)?

-1 ( +0 / -1 )

The decision was sparked by fears that Japan could treat Britain as a tax haven after Brexit if London decides to lower its corporate tax rate in a bid to attract businesses, she said.

This doesn't make any sense. So Panasonic moved because they were afraid they would pay fewer taxes if they stay?

Abadie told the newspaper that Panasonic had been considering a move for the past 15 months, with concerns about barriers to the flow of people and goods also a factor in the decision to move.

This makes a lot more sense.

Overall, it is the uncertainty that causes businesses to move. Businesses want stability.

0 ( +0 / -0 )

This doesn't make any sense. So Panasonic moved because they were afraid they would pay fewer taxes if they stay?

If a country is considered a tax haven, it will generally not be offered a tax treaty which grants credit for taxes paid overseas and reduces things like double taxation and withholding tax on dividends, etc. So paradoxically, there is a point where lowering taxes dramatically can result in higher tax payments for large global businesses.

0 ( +0 / -0 )

To businesses, uncertainty is the worst thing because, good or bad, they can't structure a plan for it

Now at least they'd know how much taxes they'd be paying to the EU

The decision was sparked by fears that Japan could treat Britain as a tax haven after Brexit if London decides to lower its corporate tax rate in a bid to attract businesses, she said.

This doesn't make any sense. So Panasonic moved because they were afraid they would pay fewer taxes if they stay?

Read the next part:

"If Japan made the [Britain as a tax haven] designation, Panasonic could face back taxes levied by Tokyo."

They'd pay lower taxes in Britain, but if designated as a tax haven, Tokyo would apply extra taxes on them

1 ( +1 / -0 )

jumping ship so fast is ..........

You mean so slow ? Others have crossed the Channel and you had not noticed. Hello Mr Rat-leaves-the-boat-Ineos !

1 ( +1 / -0 )

Without their best German, French, Italian, Dutch, Scandinavian etc employees, UK biz will/would be much, much less competitive.

It's sinking in...

-2 ( +2 / -4 )

I'm for the EU - it just needs to be a proper federalized democratic govt.

As the nation state perception remains strong a few generations have to die first.

That being said, isn't it dishonest to not follow through on the EU referendum and, after a few years, see if the UK wants back in

If the UK wants back in is no option. It will be like if WE the continental EU wants you back. And you have to bring something...

(preferably after federalizing itself so scottish and Welsh votes are counted equal with English)?

See above.. :)

-3 ( +2 / -5 )

With investments from other large, more stable, Japanese and international brands continuing to invest in the UK regardless, I doubt the British government is to bothered. oh you mean stable as in Toyota Honda Nissan, that employ thousands of UK citizens. if the EU allow 0% tarriffs on UK goods which is highly unlikley then youve nothing to fear but the odds that wont eventuate and when that happens well see how eager these companies want to remain in the UK or move to the EU 0 tarriff zone.

-3 ( +0 / -3 )

@ juminRhee

> I'm for the EU - it just needs to be a proper federalized democratic govt.

The EU is a collection of sovereign states with an elected parliament . It will never be a federal country as a whole .

Panasonic financial operations are moving along with a bunch of other financial institutions into the FREE MOVEMENT OF PEOPLE area of Europe. Panasonic has 10,000 people working across Europe. It is leaving a few people behind in an office on the outskirts of London "Investor relations staff would stay put"

1 ( +1 / -0 )

As for Brexit, what a blinking mess the UK is in. we was sold a pack of lies, the government is useless, ( in my opinion ) what trade deal? its just one big mess, no wonder companies are like rats jumping ship. The UK must be the laughing stock of Europe and parts of the world. the word U bend, toilet, spring to mind.

1 ( +3 / -2 )

Panasonic financial operations are moving along with a bunch of other financial institutions into the FREE MOVEMENT OF PEOPLE area of Europe.

Ironically, a situation that Panasonic's home country, Japan, would never tolerate in a million years. Nor would the US, China nor anyone else. If "free movement" is such a great idea, how come no one else wants to do it?

I don't recall the re-negotiations over NAFTA are incorporating this wonderful concept. TPP? Nope. It's a lost cause.

0 ( +1 / -1 )

Cosmos1:

They thought the same thing about the US states as a single nation. Weak central govts eventually become stronger. IMHO

0 ( +0 / -0 )

I don't think many here sees the actual picture.

It's not the 10~20 people that is moving to EU that is going to hurt but the vast amount of Federal Tax that was paid to the British government that is going to sink in very fast into Britain.

2 ( +2 / -0 )

Federal tax?

What’s that?

0 ( +0 / -0 )

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