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 Internet site at http://www.hmrc.gov.uk./
3. The consultation period will run from 29 th June 2009 to 25
th September 2009.
4. The Code of Practice will be introduced in Autumn 2009.
Non-media enquiries should be addressed to the Treasury
Correspondence and Enquiry Unit on 020 7270 4558 or
by e-mail to public.enquiries@hm-treasury.gov.uk
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