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Credit Suisse lost its legal battle with the UK tax authorities to recover £ 239 million, which it had paid in fees on bankers' bonuses after the financial crisis.
The Swiss investment bank paid the money thanks to a temporary levy introduced in 2009 by Chancellor of the Stock Exchange Alistair Darling following widespread anger over bankers' bonuses following the 2008 financial crisis.
The single bank tax, which applied a 50% levy on individual banker premiums over £ 25,000, was paid by banks rather than by employees. At the time, the Swiss bank had reduced by one third the amount of premiums paid to 400 bankers based in the United Kingdom in order to find funds to pay the bill, in order to prevent the rest of his employees pay for it.
Credit Suisse has this year filed a lawsuit in the High Court against HMRC, claiming that it should be able to recover the money because the way the bankers' payroll tax (BPT) has been imposed was unfair. She claimed that other competing banks such as Nomura and Rothschild either avoided the levy or paid only insignificant amounts due to the timing of their annual bonuses.
On Friday, Judge Falk rejected Credit Suisse's claim and won the case against HMRC. She rejected arguments that Credit Suisse had been disadvantaged by the tax schedule. "There is very little evidence to conclude that at least one other bank was at the same time performing a similar activity, paying large premiums and escaping the FBE. [bank payroll tax] as a result, she ruled.
Credit Suisse's decision to sue HMRC in the High Court as it sought to recover the money was described as "scandalous" last month by John McDonnell, the British Chancellor of the United Kingdom, who said that Credit Suisse should pay taxes.
In a statement released on Friday, Credit Suisse said it "had started this procedure, considering that an important principle of law was at stake. However, we accept the court's ruling.
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