Questions Raised Over London Banking Tax Data

The lobby group UK Finance is facing criticism over the alleged manipulation of data regarding the banking tax burden in London. The entity, which represents institutions such as JP Morgan and Revolut, maintains that the British capital is the financial center with the highest global taxation. The report points to a total tax rate of 46.2% for banks in London.

The document compares London with cities such as Amsterdam, Frankfurt, Dublin, and New York. However, the absence of Paris in the survey has sparked questions from experts and campaign groups. The exclusion of the French capital is seen as a strategy to protect the banking sector from potential tax increases in the upcoming government budget.

Calculations reviewed by an accounting firm indicate that the tax burden in Paris ranges between 51.6% and 57.3%. This level significantly exceeds the rate presented for London. UK Finance justified the omission by citing difficulties in producing a robust and equivalent comparison with the banking model used.

Critics claim that the choice of jurisdictions is intended to influence the political debate on fair taxation. The financial sector has been pressuring the government with warnings about the possible migration of jobs and operations to other centers. Data transparency is now at the heart of a dispute over the real competitiveness of the British market compared to its European peers.

Changes in the fiscal policy of major economies may increase the perception of regulatory risk and affect liquidity in global assets, impacting the volatility of the dollar and risk assets such as Bitcoin.