China Ocean Shipping Co (Cosco) has once again strongly hinted it is seeking to convert its Cosco (UK) to a ship-owning and ship management company. Senior executives have confirmed reports carried by CER almost two years ago that Cosco wants to place some of its modern fleet of container ships and tankers under the ownership of Cosco (UK) and manage them from the UK under the British flag. Executives believe some ships could be transferred from China to the UK in 2004 or early 2005.
Cosco would gain from the British tax regime, under which corporation tax is only paid based on net tonnage under the UK flag, and is not related to earnings and revenue.
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