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LONDON (Reuters) - Goldman Sachs Group Inc GS.N is reviewing its London operations in a move which could result in entire departments going overseas to avoid paying increasing British taxes, the Daily Telegraph reported in its Monday edition.
The newspaper, which quoted unnamed sources, said the bank was understood to be considering its options after Britain announced plans for a new tax on bankers’ bonuses, a new income tax rate and the increased banking regulations.
The Telegraph said the investment bank had asked an internal team to examine various strategies, including whole divisions being moved abroad. It said the review was in the very early stages and could also recommend no changes at all.
Goldman’s proprietary trading arm, foreign exchange trading teams and the bank’s back office operations were all mentioned as areas that could be examined in the review.
Britain has unveiled a 50 percent tax for banks on any bonuses over 25,000 pounds in a bid to rein in multi-million pound payouts from an industry bailed out by taxpayer cash. It has also announced plans for a 50 percent top rate of income tax on high earners.
No one at Goldman Sachs was immediately available to comment.
Reporting by Kate Holton
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