[ by Melanie Gretchen ]

Goldman Sachs is considering putting off distribution of employee bonuses to help employees tax advantage of lower tax income rates that go into effect on 4/6/13.  The strategy relates to bonuses that were deferred from 2009, 2010, and 2011. 

U,K, government officials blasted the firm for taking a position that would perpetuate the negative perception about banks harbored by British citizens.  Several Goldman competitors had earlier considered a similar strategy, but rejected the idea because of widespread opposition.

In April, England is dropping its top income tax rate for individuals from 50% to 45%, creating a significant difference in the amount employees will take home.  Nevertheless, the firm's investment bank paid bonuses weeks earlier than usual, disclosing to the SEC about $65 million of stock awards to 10 executives including SEC Lloyd Blankfein.

To compensate for tax hikes implemented for top earners in 2013, Goldman brought forward payments of deferred stock to executives in the U.S. to 2012.  About 24 hours after the grants, the U.S. Congress decided to the following tax rate changes:  (i) for 2013, individuals with more than $400,000 in taxable income will pay a maximum income tax of 39.6%, up from 35% in 2012;  (ii) for 2013, the tax rate on capital gains will increase, as well.

For further details, go to [CNBC, 1/13/13].