Drink giant Diageo – the firm behind Johnnie Walker whisky – said yesterday it saw many advantages to being a British domiciled company.
It added, however, that the UK Government should take steps to improve the country’s reputation as a place for doing business.
The comments came from a Diageo spokesman after reports it had been invited by the Swiss canton of Zug to relocate its corporate headquarters away from London.
Diageo, whose brands also include Guinness, Smirnoff vodka, and Bailey’s Irish cream liqueur plus a host of other whiskies, was allegedly told up to 200 of its top executives would be exempt from paying income tax.
It is thought the company has no plans to accept the proposal, which reportedly also involves corporation tax of less than 10%.
Other major UK companies are thought to have been offered similar deals by Zug in recent months.
In December, Diageo chief executive Paul Walsh said he would not rule out the possibility of a relocation, saying the company was looking at all options.
Several blue-chip companies have voiced concerns about the UK corporate tax burden, with some having already moved their HQs.
Diageo’s spokesman said: “We see many advantages to remaining a British domiciled company, but have also made clear time and again that it is important the government takes steps to ensure this country remains and develops its position as a competitive place to do business.”
Loch Lomond Distillery saw its pre-tax profits for the year to March 31, 2009, fall despite an increase in turnover, according to its latest annual report, just released by Companies House.
Accounts show pre-tax profits were £50,717, down from £82,620 the year before on turnover of £16.4million compared with £14.6million the previous year.
The company, controlled by the family of chairman Sandy Bulloch, produces Loch Lomond single malt whisky and the Scotch Earl blend at Alexandria, near Dumbarton. It also owns the Glen Katrine bonded warehouse, Gibson Scotch Whisky Distilleries and wine and spirit merchant William Morton.