David Jetuah, Accountancy Age, Monday 27 September 2010 at 16:17:00

Building giant says PwC advised on its tax shift to Switzerland, a relocationwhich will cost £6m to implement


Building giant Wolseley has said it will cost £6m to shift its tax base toSwitzerland.

The FTSE100 company brought in PwC, which also audits the firm, to advise onthe move but has not disclosed how much the firm was paid for its services.

For the year ending 31 July 2009, Wolseley's annual report showed PwC waspaid a total of £13.4m in fees, of which £5.4m was related to "taxationservices."

The restructuring proposals create a new group holding company which will beUK listed, incorporated in Jersey and will have tax residence in Switzerland.

"The implementation costs of the proposals are expected to be approximately£6m," the company said on its website.

Wolseley, which employs approximately 47,000 employees in 25 countries, doesmore than 80% of its business outside the UK.

The company blamed the continuing uncertainty around the controlled foreigncompanies regime for its move to Switzerland.

"The board has concluded that the interests of its business and itsshareholders are best served by establishing an international holding companycorporate structure that will help provide more certainty in its taxationposition," the company said today.

The proposals will not change the tax position of the UK business, Wolseleyadded.

PwC said it could not comment for reasons of client confidentiality.

Further reading:

Wolseleyto move tax base from UK to Switzerland