wait for the UK govern Another great blow to the economy of Great Britain due to the Brexit deficit; Japanese electronics firm Panasonic announced that it will be moving its European headquarters from the UK to Amsterdam in the coming month of October this year.
The reason behind this decision is that the company’s aims to avoid the potential tax issues that will arise due to the UK decision of leaving the EU, said Panasonic Europe’s chief executive Laurent Abadie. Many other Japanese companies have also made their will to move their main EU bases away from London.
“We have been studying this for almost one year, and evaluating everything, and then we decided a few months ago to move forward,” said Abadie, also mentioning the company examined potential tax concerns, and its ability to move goods and capital, before confirming it should move.
Brexit is “a very difficult issue, and as a company, we cannot wait,” said Abadie. The company has decided not to wait until March 2019. A lot is at stake and Panasonic is not willing to take that risk.
For many Japanese companies, Britain has long served as an entry door to the European Market, A
badie Added, but “after Brexit,” it cannot be the entry door to Europe anymore, that’s a fact.”
Panasonic’s move from Bracknell to Amsterdam started in the summer when the Panasonic Europe Ltd filed a notice to the UK officials that it would fuse with Panasonic Europe BV, a new company running in the Netherlands. The move of the company’s that will witness only about 10 percent of the staff moved from the UK to Amsterdam, that led to a rise of frustration among Japanese companies due to lack of clarity of the UK exit from the EU.
The chairman of the Keidanren business lobby, that includes Panasonic among its more than 1,000 customers, this week criticized a situation where a double talk by the UK government bureaucrats meant Japanese companies “Just can’t do anything”.
Panasonic is among the companies that have expressed their concerns over the possible post-Brexit changes to the tax environment. Isamu Funabiki, the senior manager of the Pwc Japans’ geopolitical risk advisory team, said that there had been a significant change since the beginning of the year among the big Japanese companies considering their options whether they should move their European headquarters from the UK or not. “Tax is absolutely one of the elements that they have to consider in that decision,” said Mr. Funabiki.
Tax-related concern due to the Brexit could include greater liabilities for a UK- headquartered Japanese company as it obtains the dividend from its European operations.
But Pernille Rudlin, head of Japan Intercultural Consulting, has a belief that for many natural conservative companies, Panasonic’s move will make it clear that it might be more beneficial to move their headquarters now than toments to negotiate their exit with the EU.