PAY and bonuses over £250,000 should be liable for corporation tax as part of reform of the UK’s “boardroom bonus culture”, the TUC has urged.
The union organisation made the suggestion ahead of bonus level announcements from banks in the coming weeks, which are sure to spark fresh controversy.
The TUC said that while last year’s bonus tax raised significant tax revenues, making big bonuses liable for corporation tax would be a better long-term solution as it would be harder for companies to avoid and could be extended across all company boardrooms.
General secretary Brendan Barber said: “There is no point in blaming individual bankers for their bonuses as they are simply obeying incentives with their system. The way to end banker bashing is to fix the banking system so that it serves the wider needs of the country.”
