FB roundup: Bombardier, Dyson, and UK non-doms
US regulators side with Boeing in Bombardier row
Family-controlled Bombardier has called a proposed import duty on its new US fleet “absurd and divorced from reality”, in the latest chapter of its spat with American rival Boeing.
The US Commerce Department this week sided with Boeing in the dispute, proposing punitive tariffs of up to 219% on Bombardier's C-Series jet, which Boeing claims is being sold in the US below cost thanks to subsidies and bailouts from the Quebec, Canadian and UK governments.
Bombardier signed in April 2016 an order with US-based Delta Airlines for 125 of the mid-sized C-Series jets. The firm is Montreal-based but manufactures wings in Belfast.
The Financial Times reported the tariff decision, if carried through in the final ruling in early 2018, would put “thousands of jobs” at risk. UK Prime Minister Theresa May has hinted her government would stop ordering planes from Boeing in response.
Bombardier is chaired by Pierre Beaudoin, the grandson of Joseph-Armand Bombardier, who founded the plane and train manufacturer in 1942. Revenue for company was $4.1 billion for the second quarter of 2014.
Dyson to release “radical” EV
Dynamic inventor and billionaire Sir James Dyson has joined the electric car race, announcing his company will pour £2 billion ($2.7 billion) into building a “radical” vehicle by 2020.
The man behind the bag-less vacuum from 1986 and futuristic Airblade hand-dryers from 2006 announced to staff this week he had a team of 400 working on the venture. The move was labelled “risky” by some commentators, given competition from other carmakers and the changing nature of the transport landscape.
Independent commentator Josie Cox pointed out there were industry-wide problems with the electric vehicle race, including a lack of charging infrastructure, poor access to battery materials, and increased urbanisation, meaning fewer people owned cars and were opting to use services like Uber instead.
Dyson, the brand considered to be the UK's answer to Apple, was founded by Sir James in 1987 and it is believed he still owns close to 100% of the company.
Dyson's son Jake produces high-end energy efficient lights through his company Jake Dyson Products, which became part of the overall Dyson Group in 2015. The middle child has been a non-executive board director at Dyson since 2013, and is tipped to take over the business.
Non-doms fleeing Brexit UK
Brexit and tax changes in the UK mean nearly half the country's non-domicile residents are considering leaving the country or have already left, according to new research.
A survey by British accountancy firm Moore Stephens suggested the government was risking £9.3 billion ($12.5 billion) in revenue.
A “non-dom” is a UK resident whose permanent home is outside the UK, meaning they do not have to pay tax on foreign income provided they do not bring it into the UK. However, long-term non-doms paid up to £90,000 a year to maintain the tax status.
The Moore Stephens report said non-doms employed thousands of people, and one respondent said they paid more than £1 million ($1.3 million) to HMRC on their UK income.
“Many non-doms have been squeezed by tax law changes over the last decade or so, but Brexit could be the tipping point,” Simon Baylis, Moore Stephens head of private client tax, said.
“The UK should be introducing policies to compete for the global pool of ultra-high net-worth individuals, not introducing policies to drive them away.”
