Written by: Keith Tully
Reviewed: Thursday 24th December, 2015
The UK arms of five of the world’s largest financial service companies paid no corporation tax in Britain last year, according to analysis of various relevant corporate filings.
Reuters reports that JP Morgan, Bank of America Merrill Lynch, Deutsche Bank AG, Morgan Stanley and Nomura Holdings all paid no corporation tax in relation to their most recent financial filings in the UK, despite generating billions of dollars in revenues and profits worldwide over the course of 2014.
Tax breaks and tax losses generated during the financial crisis of 2008 are apparently still being used as a means of bringing down tax liabilities relevant to the UK arms of the five banking giants.
Plus some of the banks were able to avoid paying UK taxes by reporting net losses on their British business operations while posting very sizable profits in relation to considerably smaller affiliates elsewhere in the world.
Spokespeople from each of the banks in question have yet to make any comment on the matter except to say that they follow all taxation rules to which their operations are legally subject.
However, the Labour MP John Mann has made clear his unhappiness with the news that some of the world’s biggest banks have been paying no UK corporation tax despite operating on a very large scale in London and elsewhere.
“The tax receipts from these large financial institutions show what a charade their claim to pay their fair share has become,” Mann said in a statement.
“They rely on the taxpayer to underwrite their risk, yet they pay a minimal return back to the exchequer.”
The issue of huge international corporations paying little or no UK corporation tax has become a controversial one in Britain in recent years.
Companies including Google, Starbucks and Amazon have become the subject of public anger after they effectively shifted profits generated in the UK out of the country in order to reduce their tax liabilities.
UK parliamentary committees have been investigating the matter in recent months and the government has made repeated public commitments to finding ways of ensuring that global corporations pay their fair share of taxes.