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.
HMRC breaches client confidentiality; and partner profits fall at EY. These stories and more discussed in Friday Afternoon Live
Does Darwin's theory apply to taxation? Colin ponders...
The UK tax gap fell in 2014-15 to its lowest-ever level of 6.5%, revealed official statistics published today
"The whole idea of HMRC officials supplying confidential information about individuals to the media on a non-attributable basis is, or should be, a matter of serious concern," say Supreme Court judges