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Executive bonuses should be subject to extra corporation tax, says TUC

Bonus Season report estimates pay and bonuses worth more than 10 times average earnings could raise £1.7bn a year

Companies that pay huge bonuses could be punished by having to pay extra corporation tax, the TUC has said. The move could generate billions of pounds for the exchequer if it is applied to pay and bonuses worth more than 10 times average annual earnings (£26,200). The TUC said it could raise around £1.7bn a year if it was confined to the banking and financial services sector. Companies are taxed on profits after expenses, which included staff costs. A TUC report, Bonus Season, uses data from the Labour Force Survey to show the total pay and bonuses to staff earning more than £250,000 is £6.8bn. It found that over a third of employees earning more than £250,000 a year in the UK work in banking and finance. © 2012 Guardian News and Media Limited or its affiliated companies. All rights reserved. | Use of this content is subject to our Terms & Conditions | More Feeds