In accordance with the new study published on Thursday, U.K. will become very less attractive to Germany for the family run business after the Brexit. It is regardless of whether the government will lower all its taxes rates for the businesses.
This study was commissioned by the Stiftung Familienunternehmen where a lobby full of German family businesses that were based in Munich Ifo institute was made. They asked 1,250 German companies who are currently doing business in the U.K. about the potential of “British tax reforms and reductions can offset the potential disadvantages of Brexit.” The responses were recoded as per the answers given.
27 percent of the companies answered with a ‘No’. This includes more than four companies. While a little over on in 10 companies making 11 percent said lower the tax rates could make any difference. The company survey was made between April and July.
The larger companies had more than 250 employees answering. The share that responded was negative and it was as high as 37 percent where about 15 percent said that they thought a new tax scheme should come up for making the Brexit as a disadvantages.
The family run businesses were particularly very vulnerable to Brexit, the study also found out that because “in addition to the significant trade policy risks,” German government has not yet resolved on many issues those were important to the family business and the shareholders.
“For family-run businesses the legal uncertainty ahead of Brexit is an enormous problem, Brexit will burden the economies in Germany as well as in Great Britain.” the head of Stiftung Familienunternehmen, Rainer Kirchdörfer, made a statement.
Kirchdörfer said the German government has to take steps to “avoid unnecessary hardship” for family run businesses, this is up for 90 percent of German businesses.
Hannah Weber is a seasoned journalist with nearly 10 years experience. While studying journalism at FernUniversität Hagen, Hannah found a passion for finding engaging stories. As a contributor to Deutch News, Hannah mostly covers human interest pieces.