Tax issues continue to trouble Publicis-Omnicom merger

Omnicom Group and Publicis Groupe have declined to comment on recent reports that the complicated structure of their proposed merger is coming under increased pressure from European tax authorities.

Omnicom and Publicis CEOs John Wren and Maurice Levy, respectively
Omnicom and Publicis CEOs John Wren and Maurice Levy, respectively

PARIS: Omnicom Group and Publicis Groupe have declined to comment on recent reports that the complicated structure of their proposed merger is coming under increased pressure from European tax authorities.

The British government has reportedly asked for a greater number of senior staffers to be located in the UK in order to green-light the plans, which include the merged company’s tax base being located in the country.

Under the plans for the merged company, Publicis Omnicom Group will be incorporated in the Netherlands and run from New York and Paris.

A spokesperson for Her Majesty’s Revenue and Customs, the UK’s tax authority, said it "does not comment on individual cases."

"HMRC has a duty to ensure all companies pay the tax due in accordance with UK tax law, and we do so consistently across taxpayers," the spokesperson said. "We continue to be vigilant and active in pursuing this, including identifying and addressing new threats as they emerge. The UK is committed to tackling aggressive tax planning and harmful tax practices."

This story originally appeared on the website of Campaign.

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