Find all School-related info fast with the new School-Specific MBA Forum

It is currently 21 Oct 2014, 07:40

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

Barclays tax claims (article)

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
SVP
SVP
User avatar
Joined: 04 Dec 2007
Posts: 1689
Schools: Kellogg '11
Followers: 13

Kudos [?]: 179 [0], given: 31

Barclays tax claims (article) [#permalink] New post 26 Mar 2009, 09:33
Interesting:

Quote:
The sources say this management culture has been integral to creating what is in effect a tax avoidance factory at Barclays headquarters at Canary Wharf. Avoiding tax by exploiting legal loopholes was not seen as something questionable but rather the raison d'etre of the Structured Capital Markets department. "There's such a macho culture in SCM and the deals are so big you never say billion or million, you just say 16 bucks or 16 quid which meant billion," one source said. "The tax avoidance was so big it became the engine of growth for the whole of the investment banking arm."




http://www.guardian.co.uk/business/2009/mar/20/barclays-guardian-tax-claim
VP
VP
User avatar
Joined: 09 Dec 2008
Posts: 1221
Schools: Kellogg Class of 2011
Followers: 21

Kudos [?]: 238 [0], given: 17

Re: Barclays tax claims (article) [#permalink] New post 26 Mar 2009, 14:32
There is a huge difference between tax avoidance and tax evasion. Avoidance is using perfectly legal means to reduce tax liabilities (so-called loopholes), while evasion is a crime resulting from failure to pay taxes legally due. Just about every law firm and accounting firm will help clients avoid taxes while following the letter of the tax law.
_________________

Get the best GMAT Prep Resources with GMAT Club Premium Membership

SVP
SVP
avatar
Joined: 05 Aug 2007
Posts: 1502
Schools: NYU Stern '11
Followers: 15

Kudos [?]: 205 [0], given: 22

Re: Barclays tax claims (article) [#permalink] New post 26 Mar 2009, 17:11
The argument is whether it is reasonable for the UK Government to use funds from HM Treasury to bail out Barclays, when Barclays' SCM desk had been trying its darndest (albeit legally) to make sure its clients' money did not reach the coffers of the Treasury. The same coffer that is now providing the werewithal for Barclays to "survive."

Jerz wrote:
There is a huge difference between tax avoidance and tax evasion. Avoidance is using perfectly legal means to reduce tax liabilities (so-called loopholes), while evasion is a crime resulting from failure to pay taxes legally due. Just about every law firm and accounting firm will help clients avoid taxes while following the letter of the tax law.
VP
VP
User avatar
Joined: 09 Dec 2008
Posts: 1221
Schools: Kellogg Class of 2011
Followers: 21

Kudos [?]: 238 [0], given: 17

Re: Barclays tax claims (article) [#permalink] New post 27 Mar 2009, 03:29
I don't really see how that changes things. Either it's so critically important to the country for Barclays to survive that the government must provide bailout money to keep it in business or its not that important to the national interest and the government lets the market decide Barclays fate. I'm sure HM Government, in its infinite wisdom, took account of Barclays tax advisory practice when deciding whether saving Barclays was in the national interest </sarcasm>

I guess my opinion is colored by the fact that I find it just a bit disingenuous when politicians start wringing their hands over the bad corporations/rich people who use tax loopholes to reduce their tax liabilities. After all, it's the politicians who wrote the tax laws in the first place and put the loopholes there.
_________________

Get the best GMAT Prep Resources with GMAT Club Premium Membership

Director
Director
User avatar
Joined: 20 Feb 2008
Posts: 797
Location: Texas
Schools: Kellogg Class of 2011
Followers: 5

Kudos [?]: 145 [0], given: 9

Re: Barclays tax claims (article) [#permalink] New post 27 Mar 2009, 06:57
solaris1 wrote:
The argument is whether it is reasonable for the UK Government to use funds from HM Treasury to bail out Barclays, when Barclays' SCM desk had been trying its darndest (albeit legally) to make sure its clients' money did not reach the coffers of the Treasury. The same coffer that is now providing the werewithal for Barclays to "survive."

Hey sol, but Barclay's hasn't taken any government funds yet. So the argument then seems unreasonable.
SVP
SVP
avatar
Joined: 05 Aug 2007
Posts: 1502
Schools: NYU Stern '11
Followers: 15

Kudos [?]: 205 [0], given: 22

Re: Barclays tax claims (article) [#permalink] New post 27 Mar 2009, 07:32
Yes, that's true - I was not correct in claiming that Barclays is "surviving" thanks to the Treasury (RBS is).

However, jb32 - in my defense, my post above was not my personal judgment on what has been happening. It was merely an attempt at an explanation behind why this is turning out to be such an issue in the UK.

Clearly, the public across the pond too is vilifying every financial institution as being somehow directly responsible for this crisis. They see no difference between say Barclays, or Lloyds or RBS. Just that the government is bailing out banks that are trying to "cheat" the Treasury of revenues it deserves.

jb32 wrote:
Hey sol, but Barclay's hasn't taken any government funds yet. So the argument then seems unreasonable.
Director
Director
User avatar
Joined: 20 Feb 2008
Posts: 797
Location: Texas
Schools: Kellogg Class of 2011
Followers: 5

Kudos [?]: 145 [0], given: 9

Re: Barclays tax claims (article) [#permalink] New post 27 Mar 2009, 08:02
I apologize for not actually reading the article before my prior post, but now that I have - WHAT A LOAD OF COMPLETE HORSESQUEEZE!!!! I mean really, people were playing poker and drinking red wine at lunch!!! Oh the humanity!!! What is this world coming to when guys get together and eat steak and drink red wine?!?!?!? Dear god, that is the most laughable bit of crap I have ever read. I only wish I could have worked at that company. I bet they also had this in the back room: http://www.youtube.com/watch?v=S1ZZreXEqSY. Just wait till the public finds out about the Heineken closet.

Here were some of my favorite quotes with my commentary below it:
Quote:
On several occasions, the sources allege, staff have come in to work to find an email from Jenkins saying a colleague no longer worked there.
You mean people were fired and it wasn't announced beforehand? I mean what kind of business practices are these animals following?!?!?!

Quote:
According to one whistleblower, a secretary was fired by another executive for booking a taxi that was a Volvo rather than an S class Mercedes.
I feel like I'm the last guy in a huge game of telephone, where what actually happened is so different than what The Gaurdian reported.

Quote:
The most lurid tales come from team-building away-days. Free cigars and champagne would apparently flow and at night poker tables would be set up. "There's a babies' table and a big boys' table. The big boys' table was all about showing who has got the biggest dick.
So they played poker? Wow, that is so outrageous. And then there was an element of machoism because guys were competing against each other? Geez, that's never happened before... I do have to question that 'Champagne' was flowing. No guy in a dick measuring contest would be drinking champagne. Period.

Quote:
Abrahams, according to one whistleblower, was also responsible for running projects that were kept completely under wraps, even from other members of the team.
And to think that not every deal was made public to every team memeber?!?!? Well, I guess they should have thought to pull the janitors and secretaries into the strategy meetings. Whoops!!
Manager
Manager
avatar
Joined: 08 Mar 2009
Posts: 193
Followers: 1

Kudos [?]: 12 [0], given: 0

Re: Barclays tax claims (article) [#permalink] New post 28 Mar 2009, 07:16
Interesting post
Senior Manager
Senior Manager
User avatar
Joined: 05 Feb 2008
Posts: 322
Location: Texas
Followers: 2

Kudos [?]: 59 [0], given: 10

Re: Barclays tax claims (article) [#permalink] New post 28 Mar 2009, 18:14
jb32, :lol:

Those are some good comments.
Re: Barclays tax claims (article)   [#permalink] 28 Mar 2009, 18:14
    Similar topics Author Replies Last post
Similar
Topics:
1 A recently published article on human physiology claims that maddy2u 23 11 Dec 2010, 01:17
Patient: Doctor, I read an article that claimed that the Nihit 3 27 Jun 2009, 12:06
Barclays loans disappeared- SBS lumone 5 06 Nov 2008, 09:39
A recently pulished article on human physiology claims that ajay_gmat 2 11 Jul 2007, 01:25
Patient: Doctor, I read an article that claimed that the nocilis 10 04 Mar 2005, 21:36
Display posts from previous: Sort by

Barclays tax claims (article)

  Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Privacy Policy| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.