Treasury 'to benefit from corporate tax receipts'

Date: 25th August 2009

The Treasury is set to welcome the return of pre-recession corporate tax revenues as several big names enjoy a marked upturn in profits.

Goldman Sachs is set to post profits in excess of the £4.1 billion posted for the financial year ending in 2008, having benefited from recent upturns in foreign exchange and commodities markets.

According to analysis carried out by the Daily Mail, the US investment bank is likely to face a massive corporation tax bill.

Meanwhile, the Treasury will also benefit from an expected £1.1 billion worth of income tax revenues as around 5,500 of Goldman's UK-based workers enjoy bonuses and annual wages averaging £500,000.

It is also anticipated that the Treasury will receive similarly large amounts of corporation tax revenues from the likes of HSBC and Vodafone again at the end of the current financial year.

The government coffers are also likely to be bolstered as tax officials clamp down on evasion at all levels, including among Britain's small businesses.

At the same time, however, official figures show that corporation tax receipts in July were down by 38 per cent on last year, with a 34 per cent drop in VAT revenues also seen over the same period.