Financial recruiter Goodman Masson’s director Richard Hoar recently stated that the so-called banking “supertax” has not precipitated the mass exodus of financial services staff that industry experts had been fearing.
In a report in the Financial Times, former Chancellor Alistair Darling recently commented that the supertax that he had implemented in regards to senior banking staff bonuses had not made a huge difference since it was too easily avoided by employers.
Mr Hoar stated that because of the facility in which it could be sidestepped, the tax did not lead to top talent leaving the banking industry. Banking institutions have found loopholes to assist tax avoidance by paying out on cash bonuses early, among other methods.
Mr Hoar further stated that some talent of note did indeed leave Britain, such as some hedge funds that relocated to Swiss offices. Other firms offered their PAYE workers global mobility in order to relocate to a more attractive locale in regards to taxation regimes, but no relocations in excess of the usual amount of annual personnel movement on a global scale occurred.
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