Supertax on bonuses unlikely to breach human rights, warn MPs
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Attempts to use human rights legislation to challenge the Government’s new 50 per cent supertax on bonuses are unlikely to work, a parliamentary report has warned.
Yesterday’s parliamentary joint committee on human rights report, ‘Legislative Scrutiny: Financial Services Bill and the Pre-Budget Report’ warned that it was unlikely that those attempting to dodge the tax “will be able to demonstrate hardship amounting to an excessive individual burden.”
It added that: “it would appear difficult to conclude that the measure is devoid of reasonable foundation” as it is likely to raise “a not insignificant amount of revenue, estimated to be about £0.55bn”.
The report said: “It is part of a package of measures designed to address excessive risk-taking in the banking industry and to require banks to consider the soundness of their capital base; it is directed at banks rather than individual bankers; and it is intended to be a one-off tax, in place only until the more systemic reforms in the Financial Services Bill come into force.”
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Readers' comments (4)
Alan Munro | 22 Dec 2009 3:33 pm
A breach of human rights? They're having a laugh, right? Clearly whoever thought up this line of defence isn't too bothered about the already abysmal image of banking and bankers in the UK.
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Tim Kelsey | 23 Dec 2009 11:50 am
I don't think the view of banks and bankers can get too much worse - they have nothing to lose!
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Julian Stevens | 23 Dec 2009 11:55 am
Are we talking about a supertax on bonuses to be paid by all the banks or just those which have been bailed out with tax payers' money?
If the former, I don't see why the government considers it has any right to intervene. As for the latter, surely the government should simply ban all bonuses and tax all profits at 70% until those banks' debts to the public purse have been repaid? The other 30% should be mandatorily set aside to increase capital reserves.
As things presently stand, tax payers look set to have to repay the money that we lent certain banks in the first place, which is perverse to say the least.
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Julian Stevens | 23 Dec 2009 11:55 am
Are we talking about a supertax on bonuses to be paid by all the banks or just those which have been bailed out with tax payers' money?
If the former, I don't see why the government considers it has any right to intervene. As for the latter, surely the government should simply ban all bonuses and tax all profits at 70% until those banks' debts to the public purse have been repaid? The other 30% should be mandatorily set aside to increase capital reserves.
As things presently stand, tax payers look set to have to repay the money that we lent certain banks in the first place, which is perverse to say the least.
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