Q & A : TAXING THE BANKS

first_img Share Q. HOW MUCH MONEY DOES THE GOVERNMENT EXPECT TO RAISE FROM THE BANKING LEVY?A. George Osborne wants to raise £2.5bn a year from a levy on banks’ balance sheets. Aides say he thinks this is the “maximum sustainable amount of revenue” he can extract from the banks. Q. WHAT DOES THE CHANCELLOR MEAN BY “MAXIMUM SUSTAINABLE REVENUE”?A. An aide familiar with the chancellor’s thinking told City A.M. that Osborne wants to make the banks “pay their fair share”. However, the aide added: “But equally we are not going to tax them so much that they leave the country and we start losing revenue.“Obviously there is a point where you tax them so much they start leaving the country and going to Singapore or the US or wherever. Obviously, that approach doesn’t make sense to anybody.” Q. WOULD BANKS PAY LESS BY MOVING OFFSHORE?A. Some banks would, yes. Foreign banks only have to pay the levy on their UK operations. So if HSBC or Standard Chartered were to move to Hong Kong, it wouldn’t have to pay the levy on any foreign assets at all – just British ones – saving it a considerable amount. However, some foreign banks could be levied twice, if their home countries adopt a similar tax. The Treasury says it will give relief to banks being taxed twice but it hasn’t come forward with details on how it expects to do this.Q. IS THERE ANY PROOF THAT ADDITIONAL LEVIES ON THE BANKS AFFECT OTHER SOURCES OF REVENUE?A. Treasury officials think so. According to an internal analysis, Alistair Darling’s £3.5bn levy on bonuses actually only raised net £2.3bn. That’s because the exchequer lost out on other sources of revenue – such as income tax receipts – as banks and bankers tried to find ways of avoiding the tax, such as deferring their bonus until the bonus levy expired. Osborne wants to avoid making a similar mistake with his £2.5bn levy. KCS-content Sunday 14 November 2010 11:15 pm whatsapp Tags: NULLcenter_img Q & A : TAXING THE BANKS by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMike HistoryAt 66, This Is Bruce Willis’ Private CarMike HistoryAmoMediaMan Leaves Wife For Her Sister, Her Revenge Is BrilliantAmoMediaBewadaHusband Divorced His Wife After Looking Closer At This PhotoBewadaScalp Psoriasis SearchWhat Exactly is Scalp Psoriasis? See the SymptomsScalp Psoriasis Search5log – Livinguard®This mask has been sold out in Germany 5 days after the government has tighten up5log – Livinguard®cutenova.comTake a Peek at 10 of the Most Expensive Houses in the Worldcutenova.comHealth.recetasgetHeart Attack Early Warning Signs and SymptomsHealth.recetasgetDinnerZUTop 5 Foods That Help Lose Weight FastDinnerZUBuzzDestination7 Types of Men Who Are Not Made For RelationshipsBuzzDestination whatsapp More From Our Partners LA news reporter doesn’t seem to recognize actor Mark Currythegrio.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgFort Bragg soldier accused of killing another servicewoman over exthegrio.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgPorsha Williams engaged to ex-husband of ‘RHOA’ co-star Falynn Guobadiathegrio.comRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgFans call out hypocrisy as Tebow returns to NFL while Kaepernick is still outthegrio.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.org Show Comments ▼last_img

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