I've been thinking, and one thing I've noticed is that the new...

I've been thinking, and one thing I've noticed is that the new tax is said to apply to "commercial banks, licensed under the Banks and Financial Institutions Act". So does KSL (the corporate parent) have the commercial banking license? or is it held by a subsidiary? (Kina Bank?), and if so, how will the new tax be applied?

It seems to me it should only apply to the entity that holds the banking license, with profits from all other activities still taxed at the standard rate.

It would all depend on the wording of the Act, the new legislation, the corporate structure of KSL, and which entity holds the banking license within that structure. Depending on these circumstances, possible mitigation measures could include a corporate restructure to compartmentalise the banking activities, or spinning off the banking subsidiary into a separate company.

If all the banks were to do such things in response to the new tax, it would be a good example of the unintended consequences that tend to arise from bad tax policy. Probably though, the initial response would be to wait it out, as the next budget could bring a reversal.

Just my musings. I'm no expert (certainly haven't read the Act, or the budget documents). Perhaps other members have some more insight on these questions.