Deutsche Bank and UBS Group lose bonus tax case in UK Supreme Court

Deutsche Bank and UBS Group must pay taxes on two banker bonuses plans, the UK Supreme Court has ruled, saying the firms exploited loopholes to avoid payments in a decision that will affect a number of similar arrangements.

The 12-year-old dispute involved taxes on two £90 million (€116m) employee bonus plans set up in 2003 to reduce liabilities on some bonuses the following year.

The British tax collection agency, Her Majesty’s Revenue & Customs (HMRC), later found the plans amounted to tax avoidance and asked UBS and Deutsche Bank to pay about £50m each.