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Changes to the code of practice on taxation for banks are set for Finance Bill 2014, following a consultation on strengthening regime
The key changes:
Changes to the code of practice on taxation for banks are set for Finance Bill 2014, following a consultation on strengthening regime
The key changes:
- more regular reporting from HMRC on banks’ compliance with the code;
- independent reviewer who will be asked to consider potential breaches of the code, and whose views will have to be taken into account by the taxman before deciding whether or not there has been a breach;
- transactions that fall within the scope of the general anti-abuse rule will be considered an automatic breach of the code, resulting in the possible naming of the bank.
The code already requires banks to:
- adopt adequate governance to control the types of transactions entered into;
- not undertake tax planning that aims to achieve a tax result contrary to the intentions of parliament;
- comply fully with all tax obligations; and
- maintain a transparent relationship with thhe Revenue.
Two hundred and sixty-two banks follow the existing code. A list of the financial organisations that have newly adopted or re-adopted the strengthened regime will be published later in the autumn.
HMRC will produce an annual report from 2015 on how the code is operating. The document will include the name of banks not complying with the code, and an updated list of which organisations have signed up and which have not.
