Johnnie Walker is owned by Diageo plc whose HQ is in London. They are giants in the drinks industry but Johnnie Walker, produced in Kilmarnock, is their most famous brand. It appears Diageo has been paying little tax to the Treasury as the tax system taxes 'only those financial profits said to arise in this country'. The bulk of Diageo's profits are declared in this class and for good reason - these overseas taxes are remarkably low.
What's their secret? The company is saying nothing, well they wouldn't, would they. Good investigative journalism has produced evidence of the way in which Diageo has transferred the brands to Holland - on paper anyway. The Inland Revenue has been over to Amsterdam to have a wee word with Diageo and a deal has been done, far more in favour of Diageo that the Treasury by all accounts.
' The legal ownership of many famous trademarks has been transferred, including Johnnie Walker scotch, J & B Rare, and Gilbey's gin - brands worth hundreds of millions of pounds.
Along with the brands has gone the ownership of the entire whisky businesses, leaving Scotland's distilleries as hollowed-out sub-contractors.'
So, next time you have a hot toddy, or just a drop of malt because you want one, give a thought to our whisky industry. Have any other companies who own one of our greatest products acted in this way? Time the Scottish government took a good look. We can't afford to have this happen in an independent Scotland.
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7 comments:
As a great lover of, arguably, Scotland's greatest gift to humankind, let's all drink non-Diago brands. Some lovely small producer's to support!
It's DIAGEO.
And Stella Artois, the most popular beer in the UK is brewed in Luton, and unlike its genuine Belgian counterpart, full of nasty things they don't own up to on the can.
Way of the world I'm afraid.
Indeed Oldrightie. I'm a Glenfiddich person myself - purely medicinal of course.
WW, I shall amend that immediately. Was in too much of a rush to complete it before the next snow fall. Many thanks.
WW amended. Shows I don't cut and paste much though doesn't it? lol
We can vote with our wallets though WW. These things just have to be brought to public attention. Now I know about Stella I shall be able to pass on the information.
Lots of international brands are produced locally for their markets - Guinness, Coca-Cola (except for the syrup), etc.
As for whisky and tax, I think this is because our tax rates are so out of alignment with many other countries, resulting in it being cheaper to buy most regular brands there than here. Same with tobacco products. If and when Scotland chooses to separate itself from the rest of the UK, I would hope that the Scottish government would adopt realistic taxation policies and not those based on narrow populism.
Locally produced brands usually differ in comparison to the 'parent' brand Bill. We've all done it haven't we? Loved the coffee in Italy and bought the same stuff in Sainsburys - only to know it's not the same at all.
What do you mean about realistic taxation once we're independent? Of course our taxation will have to be realistic or we won't survive. If your reference to narrow populism means SNP policies, then I think, once we're independent out political scene will change quickly into a good mix of right and left ideals.
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