Saturday, 19 February 2011

'The Uncomfortable Truth'

From BBC News:

Barclays has revealed it paid £113m in corporation tax to the UK in 2009, 2.4% of its £4.6bn global annual profit.
Barclays said the amount of corporation tax it paid for the year included losses for the previous year.
The UK tax authorities' relatively low take also reflects the global nature of the British bank, with the bulk of its profits coming from outside the UK.
The £4.6bn pre-tax profit announced by Barclays for 2009 does not include the £6.3bn windfall gain from its sale of its "iShares" business Barclays Global Investors in April of that year.
Although Barclays was not directly rescued by the UK government - unlike Lloyds and Royal Bank of Scotland - it has been able to borrow extremely cheaply because of the Bank of England's decision to slash interest rates, and because markets perceived that the government would not allow any big bank to fail.
Let's put this into context. And by doing so, here's the HM Revenue & Customs Corporation tax rates:
So how on earth did Barclays pay £113 million in corporation tax? surely they must pay the 27% corporation tax.... (£1.2 billion) right?

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