Judge dismisses Credit Suisse claims in £239m banking bonus row
A UK court has dismissed an attempt from Credit Suisse to recoup £239m that it paid as a one-off tax on bonuses, closing the curtains on a decade-long tussle that was sparked by the financial crisis.
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The Swiss multinational bank has lost a legal battle with HMRC over a fee on banker bonuses that it was forced to stump up after the 2008 crash.
The Labour-led government slapped the temporary four-month fee on banks following a rise in public anger towards bonuses in the City, placing a levy of 50 per cent on individual bonuses paid above £25,000.
Last month Credit Suisse launched a case against the taxman, arguing that the fee was applied “unlawfully” and that it contravened rules from the European Union.
However, Credit Suisse said today that it accepted the judgement from the High Court, which dismissed the firm’s arguments against the tax authorities.
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Justice Falk said: “There is very limited evidence on which to conclude that there was at least one other bank that conducted a comparable business at the relevant time, paid material bonuses and escaped BPT [bank payroll tax] as a result.”
The tax, which was enforced by then Chancellor Alastair Darling, raised £3.4bn for the Treasury coffers.