Diamond side-steps tax avoidance claim

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Robert Lovell
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Barclays chief executive Bob Diamond yesterday side-stepped claims during a Treasury Select Committee meeting that the bank is engaged in tax avoidance "on a grand scale".

During an evidence session Labour MP and TSC member Chuka Umunna requested a commitment to reduce the number of subsidiary companies Barclays operates in tax havens – believed to be more than 300.

Diamond was reduced to replying 'I don't know' to a series of questions about how many subsidiaries the bank has in countries such as the Isle of Man and Cayman Islands, adding “...it would not be appropriate for me to agree to something that I am not sure of the facts of.”

Umunna said: “A cursory reading of your group returns show you have over 300 companies operating in tax haven jurisdictions around the world...That division runs tax arbitrage for your bank, for high net worth individuals for companies, which enable you to all avoid the payment of UK tax.”

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13th Jan 2011 09:26


why doesnt the coalition do a half way house step and instep of applying a higher rate of tax to bank director's bonuses introduce companies house legislation to force disclosure of the number of employees paid bonuses in excess of £50,000?

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By iriyas
13th Jan 2011 13:26

make banks be banks and only banks

stop the banks developing and promoting tax avoidance products. investment bankers are the ones who use these products mostly anyway.

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