Government gives City tax deadline
Taxman gives City ultimatum on bonus avoidance
The government has reportedly set a deadline for settling a long-running tax
dispute with City firms over unpaid tax and NICs on bonuses.
Tax authorities have been negotiating the issues, which involve special
vehicles combined with dividend payments or adjustable options, and want to
resolve them before a Special Commissioners hearing. The deadline of December 9
falls before then, the FT reported this morning.
The move follows the government’s introduction of the national insurance
contributions bill yesterday, which threatens to end avoidance on city bonuses
for good.