Diageo receives offer to move HQ - report

Diageo receives offer to move HQ - report

Diageo has declined to comment on a report that authorities in Switzerland have offered the drinks giant incentives to switch its corporate headquarters to the country from the UK.

A sub-10% corporate tax rate and waived personal income tax for top executives were part of the deal offered by the local Government for Zug, Switzerland, according to Sky News today (3 February).

A spokesperson for the producer of Johnnie Walker Scotch whisky and Smirnoff vodka declined to comment directly on the offer when contacted by just-drinks.

However, the group said in a statement: "As we have said before, we see many advantages to remaining a British domiciled company, but we 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."

Concerns have grown over the last couple of years that corporate tax pressure could prompt several top UK companies to relocate their headquarters abroad. A mass exodus would damage Government tax revenues.

Diageo completed a rehousing of its global headquarters within London in December. Global staff are now based alongside workers for the firm's Great Britain division.

just-drinks understands that the move was not conceived as a stop-gap solution or as a precursor to a move elsewhere.

In an interview with Sky News' Jeff Randall late last year, Diageo CEO Paul Walsh said that he hoped the group does not move out of the UK. To see the interview, click here.