The Dutch ‘exit tax’ plan would force Unilever to refrain from offering to settle in the UK only
Dutch politicians have proposed a radical exit tax for companies that could stand in the way of Unilever’s bid to establish an exclusive head office in the UK.
The proposal of the left-wing opposition party GroenLinks would sting companies trying to relocate from the Netherlands with high bills.
The consumer goods group, consolidating its Anglo-Dutch dual structure into one London-based company, warned yesterday that the proposed law would cost £ 10 billion if passed.
Unilever’s headquarters in Rotterdam, the Netherlands. The company is consolidating its Anglo-Dutch dual structure into one London-based company
This was so high it would make plans to unite the company in the UK unviable, it added.
However, Unilever also said it believed the proposals were illegal and would violate European Union rules, as well as other international agreements signed by the Netherlands.
The law is under consideration by the Dutch Council of State, which will advise on whether the law is legal, and should then be passed by both legislative chambers of the country. No date has been set for the decision of the council.
Unilever said it expected the move of its legal base to London to be completed by November.
The Anglo-Dutch company announced in June that it would become a single UK company after 90 years of dual structure with bases in both London and Rotterdam.
It will hold an extraordinary general meeting for investors in the Netherlands to vote on the plan on September 21, while the meeting for shareholders in the UK will be held on October 12.
The previous offer to move to the Netherlands in 2018 was canceled due to objections from shareholders and a campaign by the Daily Mail.