Advising an international restaurant group on reputational issues relating to corporate and tax structures
Sector: Leisure; Restaurants
Services: Strategic communications: Senior counsel; Crisis preparedness and management
Ensure understanding of a large restaurant group’s complex corporate and tax structure, in light of societal criticism of transfer pricing and corporation tax avoidance.
Extensive analysis was undertaken to identify any issues that may be raised by critics. These were then stress-tested to ensure robust and straightforward responses that could be readily proven. All of this information was captured in a single handbook that could be referred to in the event the company faced criticism on this topic.
For several months following completion the handbook stayed on the shelf. However, eventually they did receive enquiries from a UK national newspaper that had been campaigning on corporates avoiding tax. Given the breadth and depth of the handbook, the company was able to rebut the journalist’s accusations and demonstrate the probity of the company’s corporate and tax structure. Although their corporate structure was reported on in one media title, it was evident that there was very little that the company could be criticised for.