UK: investment banks pay little or no tax, analysis shows

[Jonathan Fairfield]

UK: investment banks pay little or no tax, analysis shows

Seven of the biggest investment banks operating in London paid little or no tax in Britain last year, despite reporting billions of dollars in profits.

It is according to analysis of corporate filings carried out by the Reuters news agency.

In recent months, the seven investment and corporate banks operating in London reported figures showing they paid a combined $31 million in corporation tax in 2014. Between them, the banks generated revenues of $31 billion in the UK, profits of $5.3 billion and employed 33,000 staff.

Five of the banks – JP Morgan, Bank of America Merrill Lynch, Deutsche Bank AG, Nomura Holding and Morgan Stanley – said their main UK arms paid no corporation tax, as Britaln calls corporate income tax.

The filings show that the seven banks, which also include Goldman Sachs and UBS AG, used tax breaks and tax losses generated during the banking crisis to reduce their tax bills.

Spokespeople for the banks all declined to comment, although their filings noted that they followed all tax rules and noted that tax payments can be volatile and may reflect profits generated in earlier years.

Banking industry groups say that in addition to paying corporation tax, the banks benefit the exchequer by generating significant amounts of income tax.

The UK tax authority, Her Majesty’s Revenue and Customs (HMRC) and the finance ministry declined to comment on the banks’ payments, citing taxpayer confidentiality. HMRC said it applied the tax rules set by government without discretion.

-- (c) Copyright Euronews 2015-12-24

[shirtless]

Discretion was their when the rules were created , it didnt benefit joe citizen that is for certain

[waitforusalso]

Banks. Scourge of the world.

[SgtRock]

Now you know the reasons that some Business's are threatening to leave the UK if the UK votes out of the EU.

PAFO the lot of you.

[klauskunkel]

They still are responsible for the financial crash, but they are in bed with governments.

They get bailed out by tax money, because they are best buddies with governments.

They are untouchable, obviously, because government officials are former investment bankers.

So, why should they pay tax in the UK, or anywhere on earth for that matter?

Paying tax is for us stupid people, investment bankers are not stupid.

We stupid people only elect governments to serve the people, what we stupid people get is self-service governments.

[wabothai]

What's new?

[Rancid]

The bonuses must flow...

[Baerboxer]

Yes but to be fair they paid their senior guys some very nice big bonuses; and provided employment for lots of washed up not necessarily successful politicians on big juicy salaries.

[Jonmarleesco]

'Banking industry groups say that in addition to paying corporation tax, the banks benefit the exchequer by generating significant amounts of income tax.' Well, they would ... if they paid anything like the right amount.

'The UK tax authority, Her Majesty’s Revenue and Customs (HMRC) and the finance ministry ...' It's known as the treasury, or the exchequer '... declined to comment on the banks’ payments, citing taxpayer confidentiality. HMRC said it applied the tax rules set by government without discretion.' Really? Given HMRC's - and Osborne's - cosiness with a number of banks, I doubt that.

[up2u2]

There is a very good reason why Big Corporations pay large political 'donations' and bundles of money to 'lobbyists'. It is by far more cheaper than paying Tax.

Big Corporations and political Parties call it 'Tax Minimisation'. Ordinary folk who actually pay Tax call it Corporate and political corruption, theft and fraud.