TaxCorporate TaxBanks must pay their tax dues: Osborne

Banks must pay their tax dues: Osborne

Those with the broadest shoulders will bear the biggest burden and that means the banks, says Osborne

George Osborne

The chancellor has warned that the financial sector must abide by the letter
and the spirit of the law when it comes to paying tax.

In announcing a permanent levy on the sector in the comprehensive spending
review, George Osborne said that the banks would have to pay their fair share
into the UK’s coffers.

“Those with the broadest shoulders should bear the greatest burden. Those
with the most should pay the most, including our banks,” Osborne said.

“We neither want to let banks off making their fair contribution, nor do we
want to drive them abroad,” Osborne added.

The British Bankers Association said the announcement of a permanent levy was
not unexpected, but warned that financial institutions – particularly overseas
banks – would now be considering whether to stay in the UK.

“Financial services currently contribute around £24bn in taxes every year,”
the BBA said.

“To remain competitive we need to ensure UK policies are in step with those
elsewhere.

“Decisions taken today will have an effect on the whole industry and
particularly on overseas banks operating in the City: they are likely to look to
their tax bills and what is to be paid here and at home when deciding on their
future plans.”

Further reading:

Spending
Review: Bank bonus tax to be made permanent

Related Articles

Watch out when winding up

Corporate Tax Watch out when winding up

1m Emma Rawson, ATT Technical Officer
How might Brexit affect UK tax policy?

Brexit & Economy How might Brexit affect UK tax policy?

1m Santhie Goundar
Corporation tax losses – your newly flexible friends

Corporate Tax Corporation tax losses – your newly flexible friends

3m Emma Rawson, ATT Technical Officer
HMRC large business tax enquiry duration rises to 3 years

Corporate Tax HMRC large business tax enquiry duration rises to 3 years

4m Emma Smith, Managing Editor
SMEs paying higher rate of corporation tax than big businesses

Corporate Tax SMEs paying higher rate of corporation tax than big businesses

4m Alia Shoaib, Reporter
Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

Corporate Tax Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

7m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

7m Emma Rawson, ATT Technical Officer
EU divided over radical tax reforms targeting tech giants

Corporate Tax EU divided over radical tax reforms targeting tech giants

8m Alia Shoaib, Reporter