And it’s perfectly legal.
Some of the biggest foreign investment and commercial banks operating in Britain paid an average tax rate of just 6% on the billions of dollars of profits they made in the country last year, a Reutersanalysis of regulatory filings shows.
That is less than a third of Britain’s corporate rate of 20%. There is however nothing illegal about how they managed to reduce their taxes, and includes using losses built up during the financial crisis to offset current bills.
Seven of the biggest international banks operating in London—Europe’s main investment banking center—have published profit and tax data ahead of a year-end deadline stipulated by EU law.