Temporary tax operated as intended

Four companies in the Credit Suisse group claimed that the bank payroll tax was unlawful and claimed repayment of the tax it paid.

Credit Suisse said the way the tax was imposed in particular the limited period of about four months to which it related meant that in reality it was imposed only on banks that awarded – or were required to award – bonuses during that period. It therefore targeted those with financial years ending on 31 December since bonuses are awarded towards the end of the financial year. 

The bank argued it was a state aid measure because it conferred a selective advantage on untaxed banks that were in a comparable legal and factual situation. Further because it had not been notified to and cleared in advance by the European Commission it was unlawful.

Mrs Justice Falk in the High Court noted that the bank payroll...