New code of tax practice for banks

The Government today published a consultation document on a code of practice on tax for banks.

It sets out the behaviours the Treasury expects from financial institutions in the management of their tax affairs and in their relationship with HMRC, including governance, tax planning and the relationship between banks and the Revenue.

Feedback is being sought on a range of issues, including introducing and complying with the code, how uncertainties arising in interpreting the code could be dealt with, and what support banks can expect from the taxman in return.

The Government and HMRC will be speaking directly with banks operating in the UK to develop a shared understanding of the principles and implications of the code.

Comments should be emailed by 25 September 2009 to Susan O’Hara, or posted to her at Large Business Service, 22 Kingsway, London WC2B 6NR.

Remarked on the launch of the code, the financial secretary to the Treasury, Stephen Timms, said: 'While banks play a vital role in the UK and are important contributors of tax, it is clear that many continue to be involved in tax avoidance that goes well beyond reasonable tax planning.

'This code is part of our work to minimise tax avoidance and ensure that large businesses such as banks have a clear understanding of the behaviours the tax authorities expect from them.

'As part of the consultation we will be talking directly with banks to develop a shared understanding of the principles that underpin the code and, in particular, what it will mean in practice for banks,' added Mr Timms.

'This is vital to ensuring that the code plays a part in changing the behaviour of banks and in turn minimising the loss to taxpayers through tax avoidance.'

Issue: 4212 / Categories: News