UBS Deutsche Bank said they do not owe taxes
According to UBS AG (UBSN) and Deutsche Bank AG (DBK), taxes over a 2003 compensation plan are not owed by them, which UK authorities argue that it was designed for avoiding millions of pounds in taxes and national insurance contribution on bonuses of employees. The appeal of these two banks is that separate rulings, in which they were found legally responsible for income and payroll taxes for bonuses which were paid to bankers in shares via an offshore trust in a dispute with UK revenue official four years ago. According to the documents which were revealed on 12th March after the petition of a news agency in court for their release, £49.6 million are owed by UBS on total bonus payments of 92 million pounds into the scheme.
Swift and decisive action to handle the tax avoidance is being taken by the UK government, as told by Chancellor of the Exchequer George Osborne to parliament this month. It was told after authorities closed two tax loopholes which had been used by Barclays Plc (BARC). A harder approach is being sought by legislators for companies which hire lawyers and accountants for the purpose of cutting tax bills. It was declined by the banks and HMR that they will provide court documents to reports at a trial which ended last month. Papers were released both sides in which their arguments were outlined.
According to UBS and Deutsche Bank in the court documents, the income tax on the shares was not applicable on them because they were under restricted securities, which is why they were not eligible for contributions. Both the plans included setting up offshore vehicles which issued securities to staff members. The vehicles which are not in use anymore were invested in the securities of UBS and Deutsche Bank. Adrian Cox, the spokesman for Frankfurt-based Deutsche Bank said that this was an unusual type of arrangement since eight years ago, and it hasn’t been repeated. He added that the bank believes it met all the requirements at the times. Need cash apply with text loans no credit check @ http://www.textloansnocreditcheck.co.uk/ and get quick funds and pay taxes.
Some bonuses of the Deutsche Bank were in excess of 2 million pounds, according to tax officials. The documents were not disclosed by HMRC which were released on 12th March about the amount estimated by it owed by Deutsche Bank. Nikky Fadero, the HMRC lawyer said that there would be no comment by the department until the decision would be released by the judges. In court filing, HMRC said that the predominant reason for the ESIP scheme was tax avoidance. The trial was a week-long at the Upper Tribunal in London which was ended on 28th February. The ruling was without schedule.
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