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BANK FATCATS CAVE IN ON BONUS TAX DODGE.

Byline: JASON BEATTIE, Political Editor

BANKING giant Goldman Sachs yesterday bowed to pressure over its "clumsy" plans to dodge taxes on bumper bonus payments.

The bank caved in after Bank of England Governor Sir Mervyn King led a chorus of disapproval at the move.

Sir Mervyn said it was "depressing" that Goldman Sachs was looking to delay bonus payments awarded in 2010 and 2011 until after April 6 - when the top rate of tax falls from 50p to 45p.

Hours after his comments the bank announced the payouts would now be made before the April deadline.

He told MPs on the Treasury select committee: "I find it depressing and clumsy that people who earn so much seem to think it's exciting to adjust the timing of it to get the benefit of a lower tax rate. They know this must have an impact on the rest of society already suffering due to the financial crisis."

Chancellor George Osborne had refused to intervene in the situation.

Former Liberal Democrat Treasury spokesman Lord Oakeshott said: "The Governor speaks for us all on Goldman's greed. He shows leadership where the Prime Minister and Chancellor have remained submerged." David Hillman of the Robin Hood Tax campaign, added: "Good on him for slapping the wrists of Goldman Sachs, but why is the Government keeping schtum on a sleight of hand that'll cost us millions?"

added: "I find it depressing that rich people can benefit from a lower tax rate SIR MERVYN KING

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LEAD J Sir Merv
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Publication:The Mirror (London, England)
Date:Jan 16, 2013
Words:253
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