IoD: New tax could drive banks abroad

first_img Tags: NULL THE Institute of Directors (IoD) has warned the government that plans to introduce a banking levy could drive banking business overseas.The IoD claimed the tax is a knee-jerk reaction designed to tap into anti-bank sentiment.It said that the proportionally large UK tax – £2.5bn a year compared to €1.2bn (£1bn) in Germany – risks jeopardising the UK’s position as a premier finance centre. It also criticised taxing institutions which are largely owned by the public.While the IoD says the proposed levy of £2.5bn a year by 2013 is manageable, it believes it could pave the way for further taxes to be introduced, especially if Labour are voted in at the next election.The government hopes to avoid companies simply changing their domicile by applying the levy to banks conducting business in the UK. However, the IoD warns that corporation tax revenues would be undermined if companies are forced abroad.Miles Templeman, director-general of the IoD, said: “There is clearly public concern about how some of the banks have behaved which needs to be addressed, but this should be done in a way that doesn’t encourage the banks to move their headquarters out of the UK. “There is a risk that the bank levy, as currently designed, will drive banking business away, while doing nothing to reduce the risks that banks pose to the wider economy.”The IoD also said George Osborne has a mountain to climb on tax competitiveness.It said the coalition is heading in the right direction on tax policy, but has a “very long way” to go if it wants to stem the exodus of business and attract new investment to the UK.The UK’s corporation tax rate of 28 per cent means that 18 out of 31 OECD countries have lower rates. Show Comments ▼ IoD: New tax could drive banks abroad whatsapp by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastNoteabley25 Funny Notes Written By StrangersNoteableyMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailDailyforestThese On-Screen Kissing Scenes Were Not Planned At AllDailyforestRecetas Get5 Common Cancer Signs to Pay Attention ToRecetas GetLearn It WiseA manada de elefantes faz isso depois que o homem salva seu bebê que está se afogandoLearn It WiseForge of Empires – Free Online GameThe Must-Play City Building Game of the Year 2021Forge of Empires – Free Online GameDrhealthPut These Foods in The Fridge if You Want Poisonous Mold on Them!Drhealth Sharecenter_img whatsapp Monday 4 October 2010 9:02 pm KCS-content More From Our Partners A ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgFlorida woman allegedly crashes children’s birthday party, rapes teennypost.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgKiller drone ‘hunted down a human target’ without being told tonypost.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgMark Eaton, former NBA All-Star, dead at 64nypost.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgRussell Wilson, AOC among many voicing support for Naomi last_img read more