TaxPersonal TaxClegg fires second bonus tax warning at bankers

Clegg fires second bonus tax warning at bankers

Deputy prime minister Nick Clegg threatens another tax on bonuses if bankers return to awarding excessive payouts

Liberal Democrat leader Nick Clegg threatened a second emergency tax on bank
bonuses if bankers award themselves “unjustified” payouts in the approaching
bonus season.

He issued the threat after delivering a keynote speech to his party’s
Liverpool conference announcing a crackdown on tax avoidance and evasion
intended to net £7 billion.

It followed a speech in which Chief Treasury Secretary Danny Alexander said
£900 million would be spent by HMRC in a drive to recover the money.

The deputy prime minister was speaking on BBC Radio 4 interview before
jetting off to attend a UN international aid conference in New York.

Clegg said: “If the banks pay themselves unjustified bonuses, we reserve the
right to take very serious action on that.”

He said this “would not be in their interests at all, socially or
economically”, adding: “It is very important that the banks understand that you
cannot possibly award yourself ludicrous sky-high bonuses in an industry that
has been bailed out by the taxpayer when those same taxpayers are now having to
make very serious sacrifices in their own lives…

“If you abuse the generosity of taxpayers who have provided, both directly
and indirectly, a massive infusion of public funds to bail you out by awarding
yourselves bonuses that will appear almost gratuitously offensive at a time when
people are having sacrifices in terms of their pay and pensions, then clearly
this Government will not be able to stand idly by.”

He said no options were ruled out, including a further levy.

Clegg’s remarks follow a warning from Business Secretary Vince Cable that
defiant bankers would be heading for a “train crash” and face an “enormous kick
back from leading politicians would be “on the war path”.

The government is considering whether it would be possible and advisable to
split traditional high street banking operations from merchant banking.

Clegg also defended plans to increase revenue from green taxes, principally
on petrol and other fuel but insisted the increases would be balanced by cuts in
income tax.

Related Articles

Banks’ £135m tax avoidance scheme shutdown by authorities

Corporate Tax Banks’ £135m tax avoidance scheme shutdown by authorities

2y Fraser Simpson, Reporter
HMRC in £121m foreign bankers investigations yield

Personal Tax HMRC in £121m foreign bankers investigations yield

4y Calum Fuller, Reporter
Bankers' bonuses deferred to benefit from tax rate cut

Personal Tax Bankers' bonuses deferred to benefit from tax rate cut

4y Kevin Reed, Writer
All British overseas territories now in tax information deals

Personal Tax All British overseas territories now in tax information deals

5y Calum Fuller, Reporter
Luxembourg follows G5’s lead in tax information exchange

Personal Tax Luxembourg follows G5’s lead in tax information exchange

5y Calum Fuller, Reporter
Swiss bank to close after US tax evasion fine

Legal Swiss bank to close after US tax evasion fine

5y Richard Crump, Writer
Taxman increases tax take from highly paid foreign bankers

Personal Tax Taxman increases tax take from highly paid foreign bankers

5y Calum Fuller, Reporter
Swiss banks face $65bn tax evasion crackdown

Corporate Tax Swiss banks face $65bn tax evasion crackdown

5y Calum Fuller, Reporter