June 26, 2019

Andrew Campbell 

More than one decade ago, the UK government imposed the huge amount of tax on banker bonuses. While this amount was paid during the beginning of financial crisis on 2008, Credit Suisse recently attempted to request the tax return. The UK government gave the negative statement toward Credit Suisse because they attempted to request £239m of banker bonuses tax around ten years ago. 

The Credit Suisse accused HM Revenue & Customs to return the one-time bonuses tax paid in 2009. The one-time bonuses levy was introduced by Labour chancellor Alistair Darling in 2009.

The banker’s lawyer, Aidan Robertson stated in the court that the tax was unfair and also gave a chance for other competitors to avoid tax. Mr. Robertson also mentioned that the competitors of Credit Suisse including Nomura, Rothschild and Royal Bank of Canada attempted to pay less than this bonuses tax by paying outside the period of this policy. 

This banker insisted that the levy was unfair because the bonuses tax policy only effected between December 9, 2009 and April 5, 2010. Fifteen banks that adopted calendar years had to pay huge amounts. However, 16 banks that adopted fiscal years just paid few amounts. This was a policy to have an unequal impact on the market. 

The spokesman of HMRC stated that they will try to defend this case and to ensure the legal collection tax in 2010.

This trial scheduled to last for three days. This trial might give new evidence of this one-time levy policy during the financial crisis. The result of this trial might end up with a potential tax refund. 

Photo:Webshot.