BusinessCompany NewsPBR 09: Banks already planning to duck bonus tax

PBR 09: Banks already planning to duck bonus tax

Banks are already looking to circumvent new tax on staff bonuses

New banking bonus clampdowns will hit the attractiveness of the UK as a place
for financial services, and banks were already planning to duck the tax.

The introduction of a 50% tax on bankers’ bonuses – to be paid by the banks –
could put the UK at a competitive disadvantage, said A&M Taxand managing
director Ian Fleming.

“Neither France or Germany have implemented anything similar so it puts our
industry at a competitive disadvantage.”

He warned that banks were already looking at tax planning around the new
requirements – and it would be hard to draft legislation to stop the shift.

“How do you define ‘banks’, or ‘bonuses’?”

Employers’ status and their contracts would be looked at by banks,
potentially shifting bonuses into salaries, he added.

Further reading:

PBR
09: Bankers hit with one-off 50% bonus levy

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