London's top corporate and investment banks are currently engulfed by issues regarding their non-payment of corporate tax, and adhere only to compensate legal tax. Meanwhile, the UK government is also criticized for its tax implementation credibility after the news of these top banks failure to pay their fair share.
Seven of the top investment and corporate banks in United Kingdom have intrigued the nation after paying little to no tax. Furthermore, these banks have been reporting billions in revenue for operating in Britain. According to Dailytimes, a Reuters analysis determined how much these banks have contributed in 2014. These five banks are labelled the following: JP Morgan, Bank of America Merill Lynch, Deutsche Bank AG, Nomura Holding and Morgan Stanley, who paid no corporation tax. While the banks of Goldman Sachs and UBS AG tried to used tax breaks and loopholes to make a complete fraud n reducing their tax bills.
Moreover to this, as reported by Sputnik News, the summed payment of these 7 banks for their corporate tax statement only added up to $31million despite rendering a revenue of $31 billion in 2014 and in UK while making profit of $5.3 billion and having a 33,000 staff. Lastly, loopholes created by these banks are in the form of making a report which centered about their losses in UK while getting profits in outside countries with more relaxed tax rules.
Due to this, the government has released their statements regarding the issue. As reported by Forbes, Labour MP, John Mann said "the tax receipts from these large financial institutions show what a charade their claim to pay their fair share has become." Also, Barry Johnston, Actionaid campaign director also gave his statement which focuses on the unfairness of this situation to the public and the flaws in tax system that allowed these banks to manipulate their spreadsheets.
The seven banks that paid minimal to no corporate tax for their massive revenues in 2014 will be investigated thoroughly after news have been disclosed. London's government also released their statement but their movement about the issue is still vague.
