Remember Those $128 Million Bonuses Deutsche And UBS Paid 12 Years Back? Turns Out They WERE Supposed To Pay Taxes On Them

Apparently that was unclear.
Author:
Updated:
Original:

And the money is likely coming out of your paychecks. Those bills for decades-old tax avoidance don't pay for themselves!

Deutsche Bank AG and UBS Group AG must pay taxes on two banker bonuses plans, the U.K. Supreme Court ruled, saying the firms exploited loopholes to avoid payments in a decision that will affect a number of similar arrangements. The 12-year-old dispute involved taxes on two 90 million-pound ($128 million) employee bonus plans set up in 2003 to reduce liabilities on some bonuses the following year. The British tax collection agency, Her Majesty’s Revenue & Customs, later found the plans amounted to tax avoidance and asked UBS and Deutsche Bank to pay about 50 million pounds each. Supreme Court Judge Jonathan Mance said the schemes were “commercially irrelevant” and had no purpose other than to escape taxes, which is not what lawmakers intended when they created the rules.

UBS, Deutsche Bank Escaped Bonus Taxes Like Houdini, Judges Say [Bloomberg]

Related

Bonus Watch '12: UBS

Numbers for first and second year analysts (who are not happy). "It's been two weeks since UBS numbers came out and nobody wants to talk about it, for obvious reasons. Second years (base: 80k) ranging 45-65k and heard of some first years getting around 40k (base: 70k). And they could only achieve these numbers ("in line with the street") after firing 30+ analysts right before communication day."