Credit Suisse announces surprise bonus payments
Financial giant Credit Suisse has today surprised the City with the announcement that 400 managing directors are set to receive one-off "discretionary leadership awards" which will take the form of cash payments. However, these payments, subject to performance targets, will not be released to the individuals in question until 2012 and 2013, after the UK government's 50% bonus tax rate has expired.
Only last year Credit Suisse received much praise from the UK authorities after announcing bonus payments and confirming that the company would cover additional tax liabilities from recent taxation changes. However, there are murmurings about the sophisticated tax structure to these particular discretionary payments although the company has done nothing wrong in relation to any existing UK tax legislation.
In many ways it seems that the UK financial arena has yet again become the "devil incarnate" with the anger of all politicians, consumers and many businesses pointed towards this particular area of the UK economy. Many people fail to recognise that the financial sector has been the heartbeat of the UK economy for some time now and indeed over the years has paid billions upon billions of pounds in corporation tax as well as individual tax.
Share this..
Related stories
Should taxpayers be paid back before bonuses are paid out?
While we look at the likes of Royal Bank of Scotland and Lloyds bank, and the potential billion pound payouts in staff bonuses, we should also consider the fact that the billions of pounds poured into the system as a whole have benefited all banking operations within the UK. As a consequence, there is a growing belief that taxpayers should be "paid back" before enormous salaries and bonuses are ag...
Read MoreWhy are taxes so high in the UK?
If you look at a number of aspects of the cost of living in the UK the taxation system, both direct taxes and indirect taxes, do not compare favourably with the vast majority of developed countries around the world. This has been an issue for many years with areas such as tax on petrol and the cost of cars, let alone the cost of gas and electric, among some of the more popular gripes of the UK pop...
Read MoreWhat do you actually get for your local and national taxes?
With news that the UK government could be set to install a means test system for free pensioner bus passes, more and more people are asking themselves what do they receive for their local and national taxes?
We have seen litter collection fall from once a week to every two weeks, local government pension schemes take more and more tax income while employment in the public sector con...
Why is the MPs expenses saga still dragging on?
Despite apparently resolving issues regarding MPs expenses many months ago, the Houses of Parliament are still in disarray with four politicians set to be taken to court amid allegations of accounting fraud regarding their expenses. However, despite appointing various high-profile figures to check through expenses and collate potential reclaims the situation has now dragged on for far too long....
Read MoreGovernment to hit IT banking bonuses
The UK government has today warned IT staff working in the UK banking sector that they will also come under the controversial banking bonus tax if they receive bonuses of over £25,000. It appears that slowly but surely the UK government is widening the net with regards to the controversial tax which had appeared to be fairly and squarely targeted at UK financial highfliers. As with any governm...
Read More