Deutsche Bank sets aside 197m in banking bonus taxation

Bonuses awarded to people in London banking jobs with Deutsche Bank will result in the company paying the British government €225 million (£197 million) in additional taxation, it has been announced.

The figure was revealed in the company's fourth quarter results for 2009, which saw the company turn in a net income of €1.3 billion for its worldwide operations in the final three months of last year.

When the one-off levy was announced in the Pre-Budget Report last year, chancellor Alistair Darling said he expected it would raise an additional £550 million in taxation.

But the estimate appears to be far below what will actually be added to the Treasury's coffers through the legislation aimed against those in banking jobs.

Dr Josef Ackerman, chairman of Deutsche Bank's management board, said he expected further changes to how banking jobs are regulated in 2010, despite also predicting that the financial sector will stabilise.

"The effects of the recent crisis will take time to work through," he stated. "The regulatory framework of our industry will also [be] likely [to] see changes."

Updated: 08 February 2010.
Categories: banking-and-financial-services, london, market-and-industry-news.