Michelle Perry, Accountancy Age, Tuesday 20 July 2010 at 16:26:00

Second quarter results show one-off UK tax on bonuses cost the bank $600m


The UK?s one-off bank bonus tax cost Goldman Sachs $600m (£395m), the WallStreet bank said today as it revealed its second quarter results.

Excluding the impact of the $600m related to the UK bank payroll tax and the$550m related to the SEC settlement, diluted earnings per common share were$2.75 for the second quarter of 2010, the bank said.

The British government enacted legislation that imposed a non-deductible 50%tax on certain financial institutions for discretionary bonuses in excess of£25,000, awarded under arrangements made between 9 December 2009 and 5 April2010 to ?relevant banking employees?.

?The market environment became more difficult during the second quarter and,as a result, client activity across our businesses declined,? said Lloyd C.Blankfein, chairman and chief executive officer.