How Barclays pays its tax worldwide

Your report (£11.6bn profit, 1% tax, 19 February) and subsequent reports have referred to Barclays UK corporation tax payment in 2009 being "only 1% of the profit before tax for the group". I would like to provide some context. In fact, Barclays' total global tax payments, including payroll-related taxes, were approximately £6bn in 2009, including over £1bn in corporation taxes worldwide. There are several well-documented reasons why the UK corporate tax payment in isolation is not a reliable guide to the overall tax contribution made by Barclays.
Briefly: Barclays has operations in 50 countries worldwide. Profits earned by, or dividends repatriated from, these foreign subsidiaries are generally exempt from UK corporation tax; as with most of our peers, during the 2008 market disruption, Barclays incurred UK tax losses that have been offset against taxable profits; the disposal of Barclays Global Investors in 2009 made a significant contribution to our 2009 profit – under UK law, this disposal is exempt for UK tax purposes.
Even so, Barclays paid tax in the UK of over £2bn in 2009. Like other large UK employers, payroll-related taxes paid by Barclays and its employees continue to make a significant contribution to the UK exchequer. Barclays takes its responsibilities as a corporate citizen very seriously and this includes open and transparent engagement with tax authorities worldwide. We have adopted the UK government's code of practice on taxation, which is clear on the obligations it places on banks to ensure they manage their tax affairs appropriately. As a global organisation, Barclays should be measured by reference to its global tax contribution rather than one type of tax in one country. Barclays and its employees are proud to be making a significant contribution, fiscally and in many other ways, to the UK economy and all the countries where we do business.