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Deutsche Bank staff to share tax pain

Dec. 18, 2009 at 9:58 AM   |   Comments

LONDON, Dec. 18 (UPI) -- Deutsche Bank said it would apply a British tax targeting bank bonuses to its staff around the world to avoid having staff at only one location penalized.

"We will clearly globalize it," Chief Executive Officer Josef Ackermann said.

"It would be unfair to treat UK bankers differently," he said, The Financial Times reported Friday.

Some U.S. banks with a presence in Britain are considering taking steps to share the burden of the tax among shareholders, the Times said.

Ackerman said it was "absolutely undecided" how much of the tax burden would be passed down to shareholders at Deutsche Bank.

The tax in question is a 50 percent tax on bonus pay above a certain amount announced by Britain's Chancellor of the Exchequer Alistair Darling in a budget presentation last week.

The tax has sparked debate on both sides of the Atlantic. If U.S. banks spread the cost of the tax among all staff or among shareholders, there will be less taxable revenue in the United States due to a tax decision in Britain.

"If this can happen what's going to be the next step?"Lloyds Banking Group CEO Eric Daniels asked in an interview with the Financial Times.

© 2009 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
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