Bloomberg reports that JP Morgan has asked more than 2,000 current and former employees to contribute out of their own pockets to a settlement with the UK over the firm’s use of an offshore trust for bonus payments.
While the Bloomberg article states JPM is asking employees to help fund the settlement, Mr. Dimon’s offer seems more like extortion:

People who used JPMorgan’s trust told the FT they were asked to participate in a so-called blind auction, in which they would volunteer to pay a tax rate of their choosing.  If the auction fails to generate enough money to fund the settlement, people who submitted less than the average bid would be excluded from the deal and face a 52 percent tax rate when the trust’s assets are liquidated, the newspaper said.


From Bloomberg:

 

JPMorgan Chase & Co. (JPM) asked more than 2,000 current and former employees to contribute to a settlement with the U.K.’s tax authority over their use of an offshore trust for bonus payments, according to a person briefed on the situation.

Employees who participated in the trust were asked to help fund a payment of at least a few hundred million pounds if they want to settle with Her Majesty’s Revenue and Customs, the U.K. tax authority, the person said, asking not to be named because the talks are private. The bank and workers may pay about 500 million pounds ($802 million) total, the Financial Times reported yesterday, without saying where it got the information.

Corporations including Starbucks Corp. (SBUX), Amazon.com Inc. and Google Inc. have come under attack from British lawmakers and protesters for using complex accounting methods to minimize tax liabilities in the U.K. The government will invest in the part of the tax office that targets multinational companies, Chancellor George Osborne said last week.

The case involving JPMorgan focuses on a Jersey-based trust established 20 years ago, according to the FT. Such entities, typically holding bonus payments that can’t be repatriated without triggering tax payments, are being closed after they were targeted in legislation last year, the FT said.

“Our employee trust has always been transparent to HMRC, and its independent trustee has consistently paid taxes in accordance with U.K. tax law,” JPMorgan said in an e-mailed statement….

  1. Hahaha.  Not sure how the company can force employees into higher taxes like this legally, I don’t follow or care to follow UK law.  But the thing sure makes me feel warm and tingly inside, knowing that 2000 of the people who work at one of the more corrupt institutions on the planet are now feeling railroaded by their employer.  Screw them, they made money from the criminal empire — I hope each and every peon have their own corner of hell waiting for them.

    • Maybe it will be allowed if the banking elites control the laws and then force all employees to pay the tax settlement. No way I’m going to be helping a rich bank to pay off its fees, taxes and debts especially when they can produce currencies out of thin air!

  2. There might be a lot of reasons for JP Morgan asking its employees to fund the UK tax settlement. It might due to the fact that JP Morgan is having financial problems or maybe because it wants to also screw up its employees.

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