Sir Mervyn vs Goldman Sachs
Sir Mervyn King to the Treasury Select Committee on reports Goldman Sachs planning to delay payment of bonuses this year until the 50% tax rate is removed in April:
Update: worth pointing out that neither Sir Mervyn nor the MP who asked him the question, Teresa Pearce, mentioned Goldman Sachs by name but it was clear both from the question and the response that the pair were referring to this story, which has had considerable follow-up since.
In her question, Teresa Pearce referred to “The recent report on people deferring their bonuses to the 6th of April – do you think that’s ordinary tax planning or morally repugnant?”
Update 2: Goldman Sachs has decided not to defer the payment of its bonuses as had been mooted in the FT story above. The option was considered at a meeting of its compensation committee today but they decided not to take it up. I wonder why…