Europe

Barclays avoids taxes as money via Luxembourg

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Barclays Bank Office in Canary Wharf London

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According to a study in a British newspaper, the British bank Barclays was able to avoid a tax of around € 2.1 billion and pay less than 1% by routing the profits from the transaction to Luxemburg.

The Barclays tax bill has shown that it has used the 2009 decision to sell its cash management business to US financial group Blackrock Inc. for more than a decade, the Guardian reported Monday.

According to the newspaper, Barclays’ profits from the $ 15.2 billion sale were reported in the Grand Duchy, not in the United Kingdom. This allowed Barclays to offset future profits against the decline in the value of the company’s shares acquired as part of the transaction, the Guardian reported.

Barclays employs only 54 people in Luxembourg, but last year’s revenue was £ 1.1 billion (€ 1.28 billion), and the bank’s Grand Duchy business is the second largest after the UK and the United States, which employ thousands. The Guardian writes that it is profitable.Barclays did not respond on Tuesday Luxembourg Times I asked about the current staffing.

Barclays’ Luxembourg business has made a profit of £ 6.6 billion (€ 7.7 billion) since 2013, but has paid only £ 46 million (€ 54 million) in taxes, according to annual tax documents released by banks. .. ..

According to the Guardian, Barclays could have been taxed by nearly 25% to 30% if it hadn’t taken advantage of loss offsets in Luxembourg.

The Grand Duchy’s reputation as a tax haven for multinational corporations such as Barclays has been unwavering since 2014. LuxLeaks scandal.. The exposure showed a major multinational company in which Luxembourg offered special tax transactions in favor of its presence in the Grand Duchy.

last year’s Revelation of OpenLux Wealthy people around the world have shown how to use a Luxembourg shell company to protect their property and other assets from tax collectors.is more than 25,000 such letterbox companies have listed their offices at an address in just 40 Luxembourg...

Country Last year we awarded more controversial tax decisions than in 2020While challenging the reputation as a tax haven.

A series of journalist investigations on taxes avoided by using an opaque legal structure across Europe The European Commission issues a directive at the end of last year to force thousands of holding companies to prove that they are doing significant work in Luxembourg...


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http://www.luxtimes.lu/en/business-finance/barclays-avoided-taxes-as-money-routed-through-luxembourg-627a2840de135b92363026be Barclays avoids taxes as money via Luxembourg

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