Bank Levy Tax and Banks Maybe Moving out of the UK

What the UK can and can’t safely tax is shown by the fragility of the banking levy tax. HSBC, the Hong Kong & Shanghai Banking Corporation, said in its recent shareholders’ meeting, in Hong Kong, that is will look again at the best place to base itself once UK regulation has settled down. A big part of this is the UK banking levy, which some HSBC shareholders see as a tax just for being in the UK. The UK tax system still in many ways has a 19th century system of taxing companies according to where the office address is located. But in the 21st century multi-nationals easily move, or reallocate, addresses all around the world. This is a big problem for a tax system not based on the real profits generated in a country, before any reallocations.

Eamon McNicholas
Tax Barrister, Accountant
http://www.EamonMcNicholas.com

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About Eamon McNicholas

Tax Barrister, Accountant www.EamonMcNicholas.com
This entry was posted in Tax and Accounting News and tagged , , , , , . Bookmark the permalink.

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