Code of practice on tax for banks
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Issued 29 June 2009
The Government today published a consultation document on a code of practice
on tax for banks. The code sets out the behaviours the Government expects from
banks in the management of their tax affairs and in their relationship with HMRC,
including governance, tax planning and the relationship between banks and HMRC.
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 HMRC 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.
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. 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.”
1. The 2009 Budget report (see section 5.98) reiterated the Chancellor’s
announcement made on 16 March 2009 that a Code of Practice concerning taxation
for the banking sector would be published. The consultation document published
today requests feedback from taxpayers, their advisers and others on
implementation issues relating to the introduction of the Code.
2. A copy of the consultation document ‘A Code of Practice on Taxation for
Banks’ can be found on Her
Majesty’s Revenue & Customs website.
3. The consultation period will run from 29th June 2009 to 25th September
4. The Code of Practice will be introduced in Autumn 2009.
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Article Published/Sorted/Amended on Scopulus 2009-06-30 12:08:13 in Economic Articles