In the battle of bankers v shareholders bankers winin as bonus tax fails

Posted on / UK / Business - UK Treasury to cash in as bonus tax fails.

As the FT notes:

Alistair Darling’s attempt to stop banks making lavish bonus payments through the one-off 50 per cent “supertax” has failed, government officials admit, as many institutions plan to absorb the charge rather than reduce pay-outs.

The chancellor’s allies admit the tax has not changed the behaviour of big financial institutions, but take comfort in the fact that the Treasury is set for a windfall of hundreds of millions of pounds just months before the election as a result.