Latest editorial
Osborne accused of ‘soft touch’ on tax-dodge banks
TORY Chancellor George Osborne was accused of being a “soft touch” on tax avoiders yesterday after it was revealed two more major banks dodged British taxes.
Citi Group and Credit Suisse did not pay a penny of corporation tax in 2014, according to figures revealed by Reuters.
The revelation comes just two weeks after returns showed JP Morgan, Nomura Holdings, Deutsche Bank, Bank of America, Merrill Lynch and Morgan Stanley also paid no tax.
It means that seven of Britain’s 10 biggest investment and commercial banks paid no tax in 2014 — despite making almost £6 billion in profits here.
Labour shadow chancellor John McDonnell said: “These are damning findings that make a real mockery of the government’s approach to taxation of the financial sector.
“This news will also be completely disheartening to the millions of us UK taxpayers who bailed out the banks and continue to pay the price for their past actions and excesses.”
Citi Group made £283 million, but past losses reduced its bill to zero, while Credit Suisse reported losses in Britain.
Experts said it was likely that the bank reported most of its European profits in Switzerland, which has a lower tax rate.
They were able to escape tax after Mr Osborne caved in to threats from banks to leave Britain if he did not cut the bank levy.
“The truth is that bankers see George Osborne and this government as one of their own, and the feeling is mutual,” Mr McDonnell added as he demanded the cut be reversed.
Similar stories
CAROL WILCOX argues for the proper implementation of the land value tax, which could see unused plots sold off and landlords priced out of landlordism, potentially resolving the housing and planning crises
