Two major international banks have insisted they do not owe outstanding taxes from a compensation plan they implemented in the UK in 2003.
Deutsche Bank and UBS have today (13 March) moved to reject claims from regulatory bodies in Britain that they deliberately avoided tax payments worth millions through a loophole they exploited when remunerating staff, Bloomberg reports.
Court papers obtained by the news source indicated that in separate rulings, the lenders had both paid bonuses to professionals working for them through an offshore account.
As such, it is claimed that UBS owes £49.6 million ($77.5 million) on bonus payments of £92 million into the plan - a figure the financier denies is accurate.
Both UBS and Deutsche Bank - which, it recently emerged, took on around $13 billion in loans from the European Central Bank at the end of February - counter these claims by stating the bonuses were paid in "restricted securities" shares, meaning they are not subject to taxation.
By Gary Cooper