Barclays to Spread Bonus Tax Across Global Investment Workforce: Source

Barclays to Spread Bonus Tax Across Global Investment Workforce: Source

“Barclays will spread the impact of a one-off British tax on bankers' bonuses across its entire global investment bank workforce rather than just on London staff”, said a source, on Friday.

The investment banking arm Barclays Capital, joined several of its rivals including Deutsche Bank, in its decision that the staff in London will not be hit more than colleagues elsewhere in the business due to the tax.

Other noted banks, including Credit Suisse, have said most of the burden will be taken by London staff.

According to the same source, “The 50 percent tax on any bonus over 25,000 pounds ($39,000) is paid by the bank, rather than employees. As bonuses vary according to earnings, capital, competitors and other factors, it is impossible to say if it will be paid from bank revenues or the "bonus pool" as that is not a fixed amount”.

The controversial levy was introduced by Britain two months ago, forcing banks to scramble and rework payout plans. Though some banks are taking a charge for it in their 2009 results, there are others, which will take the hit in
2010, as the tax has not yet been formally passed.

Banks are under intense scrutiny on the controversy of bonuses. Politicians, backed by an angry public, are headstrong to clamp down on bumper payouts soon after many banks were bailed out with taxpayer cash.

Barclays declined to comment.