McDonald’s is shifting its European headquarters to Geneva in an apparent attempt to avoid new tax rules in the United Kingdom that would result in double taxation of revenues earned from intellectual property rights, according to a spokeswoman for McDonald’s quoted in the Guardian newspaper this week. The move seeks to benefit from advantageous intellectual property tax laws in Switzerland, it said. Under the new UK tax rules, McDonald’s would be liable to pay taxes on revenues earned from licensing its intellectual property rights to franchisees, even if those revenues had already been taxed abroad. The new head office would be opened in Geneva before the end of the year.
Intellectual Property Watch
Original news and analysis on international IP policy
I think those of us interested should all watch very closely the EU Swiss interaction as it develops with regards to IP taxes. I believe It will make for examples in this created international trade system regarding future interaction with other states. It begs a question what such interaction on a global scale will have. Will we witness perhaps swaying in and out of the international trade regime of developed nations and their affiliates as needs arise? Hmmm, this would make for a very interesting international trade picture. I myself have some theories that I feel are inevitable in the world trade system as I watch these movements like McDonalds is making.