JP Morgan, Bank of America Merrill Lynch, Deutsche Bank, Nomura Holdings and Morgan Stanley paid no corporation tax at all, the news agency said.
The banks offset past losses against their taxable income for 2013-14.
The banks have so far declined to comment, but their tax returns say they complied with UK tax rules.
The
research into the financial reports found that seven banks, which also
included Goldman Sachs and UBS, used tax benefits as well as losses
generated during the banking crisis to reduce their corporation tax
bills.
The seven banks paid a
combined £20m in corporation tax in 2014, even though they had profits
of £3.6bn on revenues of £21bn, the news agency said. The banks employed
33,000 staff.
But the financial reports noted that the banks
followed all UK tax rules, and that tax payments can be volatile and may
reflect profits and losses from previous years.
Moral issue?
Laura Lambie of the investment management firm Investec told the BBC that there are a number of reasons why the banks paid little or no corporation tax.
"Certainly
in the case of Deutsche there are questions as to why it's not paying
UK tax. Some of the other banks, it's because they have big losses
carried forward from previous years," she said.
She added that
there was "a kind of moral issue there" for the banks, although she
acknowledged that bank staff do pay large amounts of UK income tax.
She
added that fines for foreign exchange or Libor rigging, or consumer
product mis-selling, have seen many banks still produce high levels of
revenue for the UK authorities.
The ability of big banks to offset
current profits against previous losses was reduced by the government
in the 2014 Autumn Statement.
In December 2014, Chancellor George
Osborne said that the "amount of profit in established banks that can be
offset by losses carried forward" would be limited to 50% of their
profits in the 2015-16 tax year.
But banks were given better news
in the 2015 Budget when Mr Osborne said corporation tax was to be cut to
19% in 2017 and 18% in 2020.
No comments:
Post a Comment