Thread by @docrussjackson

#Barclays avoided nearly £2BILLION in tax via an arrangement in tax haven Luxembourg: it paid less than 1% on profits since 2009, when it booked profits from the $15bn sale of a fund management business there rather than the UK.

#CostOfLivingCrisis

theguardian.com/business/2022/…

Barclays employs only 54 staff in Luxembourg, but it is currently the bank’s third most profitable jurisdiction behind the US & UK, with turnover of £1.1bn last year. Low staff costs mean Barclays can turn nearly all of that income from corporate & investment banking into profit.

The bank has 46,000 staff in the UK & nearly 10,000 in the US. Cumulatively, Barclays’ Luxembourg operations have made £6.6bn in profits since 2013, according to annual tax documents.

Thanks to the generous tax arrangement, it has paid just £46m on those earnings, or about 1%.

In 2013 it was reported that as much as £1bn a year of Barclays' annual profits in the years leading up to the banking crisis is believed to have come from the prolific & secretive tax avoidance factory at the heart of Barclays' investment banking arm.

theguardian.com/business/2013/…