September 27, 2021
General News

European banks storing €20bn a year in tax havens | Tax and spending

Leading European banks are booking around €20bn (£17bn) a year – equivalent to 14% of their total profits – in tax havens, with Barclays, HSBC and NatWest Group among those enjoying the lowest tax rates, according to a new report.

The figures emerge from an analysis, conducted by the EU Tax Observatory, of 36 big banks required to publicly report country-by-country data on their activities.

Banks said to enjoy a particularly low effective tax rate on their profits, of less than 15%, include Barclays, HSBC and NatWest – which changed its name from Royal Bank of Scotland last year. The effective tax rate is calculated as the ratio between aggregated tax paid and profit posted, across all jurisdictions.

A spokesperson for HSBC said the bank did “not employ tax avoidance strategies, including those designed to artificially divert profits to low-tax jurisdictions”.

shoppers pass an HK branch of HSBC
HSBC is…

Read full article here: www.theguardian.com