Investment banking company Credit Suisse is preparing to sue HMRC over the temporary bankers’ bonus tax that was in place between 9 December 2009 and 5 April 2010.
The Sunday Times reported that the banking company’s lawyers were aiming to reclaim more than £200 million from HMRC – money they were forced to pay when the then Chancellor of the Exchequer Alistair Darling introduced a temporary 50 per cent tax on bankers’ bonuses above £25,000. The tax was on banks rather than on individuals
Court documents seen by the newspaper revealed that Credit Suisse believe that the tax applied was “unlawful” and against European rules. The claim is attempting to claw back the tax money and damages from HMRC.
The so called ‘super-tax’ was introduced in the aftermath of the financial crisis to help tackle the perceived excesses of the banking sector. Darling announced the tax in an effort to stop banks using profits to pay out large bonuses.
The case is expected to go to the High Court in late June.
