Bizarre reporting from The Guardian on RBS's results
Posted by Christie Malry on February 24, 2011 at 9:12 am
RBS bankers get £950m in bonuses despite £1.1bn loss
Yes, it's our old friend, Jill Treanor.
I suspect she might have meant "Bankers' bonuses turn a £150m loss into a £1.1bn loss." Bonuses are, after all, a deduction in arriving at the loss, not a deduction once you get there.
It's also noteworthy that RBS made a pretax loss of £399m but had a tax charge on those losses of £634m. That's about –160%! Given all the accusations of tax dodging that have been thrown at the banks, not least by Treanor herself, I would have thought this was noteworthy. Wouldn't you?
(The reasons, in case you're interested, are losses not allowable for tax, offset somewhat by untaxed items; foreign profits taxed at rates higher than the UK; and in-year losses for which a deferred tax asset hasn't been established)
Written on my Android mobile phone. Article may be edited later.
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And what is the value of the unrecognised deferred tax asset for losses - last year it was c£3.6bn. I presume that when eventually the Goivernment sells its stake the Governmemt will cancel the carryfoward of such losses which we the tax payer have underwritten, rather than give an unrecognised asset to its friends who happen to be buying. We wouldn't want a repeat of what the previous Tory govt. did when selling of the railway leasing companies would we?