Talk about a slap in the face. Goldman Sachs (GS), in a bid to keep employees away from the UK’s new onerous bonus tax, is threatening to shift a chunk of its London bankers over to highly troubled spain.
The Independent: Goldman Sachs International was the biggest contributor from the financial services sector to Britain’s purse last year. Previous reports suggest that in some years the firm’s staff have contributed more than £1bn in personal income tax to public coffers.
A City source said: “Goldman could move a relatively large number of people if it wants to. Given how much Goldman and its staff contribute to the tax take, the firm has plenty of leverage. This is a bargaining position more than anything.”
The bank, which employs around 5,000 staff in London, is believed to have strong links to the Spanish government, although it has a relatively modest number of employees in the country. Although staff moving to Spain would not receive any special tax incentives, the bank could avoid paying the bonus tax, details of which, so far, remain sketchy.