Alistair Darling: Banking bonus tax unlikely to be repeated

2 September 2010

Former British chancellor Alistair Darling has stated that the one-off tax on banking bonuses he introduced last year is unlikely to be repeated.

Speaking at a Nomura-sponsored financial services conference, Mr Darling said he would be surprised if the new Conservative-Liberal Democrat coalition government reintroduces the levy, reports the Financial Times.

"Frankly, the very people you are after here are very good at getting out of these things and ... will find all sorts of imaginative ways of avoiding it in the future," he forecast.

The 50 per cent tax was applied to bonuses of more than £25,000 ($38,495) and led to industry complaints that the most talented workers would seek jobs abroad in protest.

According to estimates from the Financial Times in June, the banking bonus tax cost Goldman Sachs around $600 million, JPMorgan $525 million and Bank of America $465 million.

Citigroup was also forecast to be facing a $400 million bill because of the levy.

By Tony Aynsley


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