Merrill losses means no UK tax for years
Investment bank channels £16bn of sub prime losses through UK subsidiary
Merill Lynch is unlikely to pay corporation tax in the UK for decades,
according to reports in the press, because the investment bank has channelled
its £16bn of sub prime losses through its UK branch Merrill Lynch International.
According to the Financial Times Merrill revealed its tax management strategy
in US regulatory filings.
Experts are said to have commented that Merrill must be able to demonstrate
that Merrill in the UK was the owner of the securities that failed.
The FT calculates that at 2006 profit rates the UK subsidiary could escape
paying corporation tax for up to 60 years.