Darling admits bank bonus tax ‘failed’
Former chancellor says 50% bonus tax failed to change behavior, with financiers finding ways around the rules
Former chancellor Alistair Darling has admitted that the tax on bankers’
bonuses he introduced failed as City financiers devised “imaginative” ways to
work around the rules.
Speaking at a financial services conference, Darling said the tax was
unlikely to be reinstated by the current government as “the very people you are
after here are very good at getting out of these sorts fo things” reports the
Financial Times.
The 50% tax on bonuses over £25,000 had also failed to change the behavior of
the industry over pay, he admitted.