Bankers win again

[SUZIFACE]

the banks will pay corporation tax on their profits and employers NI on the NIable portions of the salary/bonuses, the individuals will pay income tax and NI on the cash parts of the salary/bonus and capital gains tax when any share component is disposed of.

 

I suspect this is your profession,and this is not a personal attack, but you seem to be in support of these greedy appaling people.

[splodgeyAl]

the banks will pay corporation tax on their profits and employers NI on the NIable portions of the salary/bonuses, the individuals will pay income tax and NI on the cash parts of the salary/bonus and capital gains tax when any share component is disposed of.

So in December 2009 we'd given the banks £850 billion ( http://www.independent.co.uk/news/uk/politics/163850bn-official-cost-of-the-bank-bailout-1833830.html ) and in the same tax year, they paid (according to the PwC report I'd linked previously) £5.6 billion and £7.6 the year before in Corporation Tax. Obviously a bit more with NI etc.

 

So, even without the compound interest, should only take about 100 years to balance the books, unless they and their employees pay considerably more NI, income tax etc than that.

[andyofborg]

The public rightly demand that the banks that we bailed out should pay every penny back, not just for the sake of the pounds and pennies I think the government have a big moral obligation to given all the job losses they caused, so it will be interesting to see how they handle it and what the public reaction will be if they fail to act.

 

but what has that got to do with bonuses?

 

where there have been direct loans, then chances are they the taxpayer will be repaid particularly if the bank remains a going concern. where the bank has failed like the bad bit of northern rock then that may not happen, however, i would have thought that the good bit of northern rock would eventually be able to repay any loss even though it may take many years. i'm not sure what the current state of northern rock is, the media seems to have forgotten about it.

 

where guarantees have been issued in exchange for a fee then if the economy keeps picking up it may be that none or few will have to be honoured in which case the government has made a lot of money for nothing which is nice

 

I believe that these loans and guarantees come to an end in 2012 or 2013 so the banks are going to have to raise a massive amount of money possibly more than the credit market can supply. So, I think that there is a chance that these schemes will have to be extended for another few years,

 

Where the government cash was converted to shares then the government will have to sell them, either through an 80's style privatisation or by selling them on the open market like any other shareholder. Though possibly it may be possible for the bank to buy the shares and either destroy them so increasing the value of the remaining shares or keep them to sell to raise cash as and when needed. As far as I'm aware then there is no time limit on when they have to dispose of the shares by so they should be waiting for the price and conditions to be right, however you want to define right.

 

Personally, I'd like to see the shares sold on the open market at any point where the price rises above say 15% of the purchase price until they are all gone.

[andyofborg]

They sure could move abroad, but imagine the costs and hassle involved in moving an entire HQ, it would be phenomenal, and all for the sake of a bit of wage restaint.

 

it wouldn't be that big a cost, a few tens of millions at most, probably a lot less, that's back of the sofa change for a big bank.

 

I once heard Cable on about taxing them the maximum amount possible without pushing them abroad, the coalition need to do this or they will lose a huge amount of credibility.

 

perhaps we have pretty much reached that point now.

[Anna B]

The banks are loyal only to making money. If they can make more of it abroad then they will move there regardless of anything we might do to try and keep them here.

 

We need to build up other income sources in this country so we are not over reliant on the banking sector. Easier said than done, but deeply necessary.

 

We should be ploughing money into research and development, science and technology (and by implication, Universities) to develop new products and methods. We desperately need to make and sell things, to give ourselves a firm and real economic base.

 

Also, all countries need to join together to regulate the Global banking industry, to bring back control, before the whole sorry story repeats itself as it surely will.

[SUZIFACE]

If the govt had paid off every bodies credit card, that would be less debt for us all giving us more money to spend. Credit cards should be banned. Once I have cleared mine off, its never again, already I have a load an go

[taxman]

If the govt had paid off every bodies credit card, that would be less debt for us all giving us more money to spend. Credit cards should be banned. Once I have cleared mine off, its never again, already I have a load an go

 

Don't know why the Govt should be expected to pay off anyone's credit card. Lots of people don't overspend and run up debt so why should their taxes go to bail out more profligate spenders?

[SUZIFACE]

Don't know why the Govt should be expected to pay off anyone's credit card. Lots of people don't overspend and run up debt so why should their taxes go to bail out more profligate spenders?

 

So we will just pay for the irresponsible behaviour of people who already get get fortunes, ie bankers. Wake up sunshine

[Berberis]

Most of them avoid tax

 

No they do not. What a silly comment

[I1L2T3]

A number of ridiculous misconceptions on this thread.

 

The economy will not collapse if some investment banks or bank HQs move abroad. We will still have banks. We will still have investment banks. We will still have banking HQs. It's a ridiculous notion that tackling the banks will result in us having no banks left. Laughable.

 

The banking sector is not keeping the economy afloat. It is significant but if it was to trim by 50% it would not be the end of the economy. It contributes 13% of total tax take in the UK, a figure that will probably surprise a few people because of how low it is. Source: http://www.cityoflondon.gov.uk/Corporation/media_centre/files2009/FS_tax.htm

 

The banking sector is not keeping the economy afloat. It is sinking the economy. The net loss to us is huge. We are still looking at the possibility of up to £850bn in public guarantees for private toxic debt created by our banks. That is almost 15 years worth of the tax revenue they currently generate. Astounding figures.

 

People have this concept that it is wrong to interfere with the operation of private companies, to tell them what they can and can't pay. In principle that is correct but lest us not forget that even banks that weren't directly bailed out (e.g. Barclays) have availed of special liquidity schemes, know they are backed by public guarantees and have avoided being exposed to other collapsed banks. This allows them a more stable environment to operate in. Direct bailouts maybe not but they are still in good health largely in due to government stabilisation of the banking sector. They should be considering this when setting bonuses.

 

But there you go, some people will still support the banks. Idiots.