A tax on banker bonuses introduced by the U.K. government has been sharply criticized by financial industry officials, but observers say it could help bolster Canada’s position as a global financial services centre.
“Tax is a very blunt instrument to use,” said Rick Waugh, chief executive of the Bank of Nova Scotia and a senior official with the Institute of International Finance, a leading lobby group for global banks.
Speaking to reporters in Washington, Mr. Waugh said the tax could have the unintended consequence of making banks in less regulated jurisdictions more competitive.
Under the U.K. rule, any bank that pays a 2009 bonus of more than 25,000 pounds will pay a 50% tax on the money.
Because companies will pay the tax rather than employees, it will have a direct impact on corporate profitability.
Business leaders in Britain worry that it will further weaken U.K. banks, which received more than a trillion pounds of bailout money, much of which has yet to be paid back.
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Quoting, admittedly taken out of context, “tax is a very blunt instrument to use.”
Citizens “concessus” follows on that.
And what’s Paul Martin’s Canada Steamship Lines paying in corporate taxes, according to Diane Francis, NP? That’d be exactly 2.5 percent.
Can Drummond address Ontario’s growing small/medium business failures and its failures to secure seed money loans for infrastructure, equipment renewals vs. the HST’s listed allocations
Europeans want to get rid of their manufacturing and banking systems, it’s too late for Ontario because of McGuinty’s Liberals, but Alberta and Saskatchewan should be advertising themselves over there.