Bank uses Cayman to avoid tax on bonuses
(Daily Mail): Deutsche Bank has lost a £50million case in the UK involving an elaborate scheme to avoid tax on bankers’ bonuses. The bank was paying staff through a share scheme involving a Cayman Islands company. Bankers were given ‘restricted’ shares in the offshore firm. They had little value until the restrictions were removed, meaning there was negligible tax due on the initial gift of the shares. A Revenue & Customs tribunal ruled that the complex scheme, which ran from 2003 to 2004, was ‘created and co-ordinated purely for tax avoidance purposes’. More than 300 bankers took part and the scheme was approved by the board, the tribunal judgment said. Deloitte advised on the scheme and drafted in Investec to help.
Category: Business
