INEOS considers change of tax residence to Switzerland
INEOS Capital has today confirmed that is considering the move of its headquarters and tax residence from the UK to Switzerland. The company is seeking the consent of its lenders to enable it to implement changes that would facilitate an eventual move to Switzerland, pending the outcome of an internal review currently underway.
The company’s day-to-day operations both in the UK and elsewhere around the world would remain unaffected should the company proceed with this change.
INEOS has weathered the current recession well. It has stabilised its business, is trading in line with its business plan and its financial performance is expected to improve further over the longer term. The company has estimated that the improvement in financial performance, coupled with current and expected changes in UK tax legislation, will result in significant levels of additional tax being payable by its businesses; money that would otherwise help secure competitiveness and re-investment across its production facilities.
INEOS estimates potential cash tax savings of around €450m between now and 2014, should it proceed with the move to Switzerland. This saving would further support investment in skills, plant and technology, considered by the company to be critical to driving future growth and competitive advantage.
Irrespective of this change INEOS remains committed to its UK operations. It continues investment in the UK as one the countries largest manufacturing companies, employing 3,700 permanent staff and 1000 contractors across eight UK sites; supporting tens of thousands of indirect jobs.
Commenting on the move, Tom Crotty CEO of INEOS said today: “We have to make a decision that is right for INEOS, our businesses and our sites, to ensure we remain competitive long-term in a global marketplace. Many leading chemical companies have European or global operations resident in Switzerland and we need to compete effectively with them.
“We remain committed to the UK and our facilities will continue to play an essential part in the long-term growth of INEOS. Investment in people skills, plant and technology is an important element of our ongoing competitiveness and the change of tax residence would allow us to increase investment to the benefit of all stakeholders in our business.”
INEOS is an international business employing 15,500 people, across 64 plants in 14 countries. It generates 70% of its revenue outside the UK.
For further information contact:
Richard Longden – INEOS - Tel: +44 (0) 2380 287037 +44 (0) 7710 371998