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United Kingdom, Italy, Finland

United Kingdom, Italy, Finland REVIEW 2 0 0 9 ­5 ec Legislation TAX Code of Practice on Taxation for Banks 2.2. Governance The Code states that banks should have a formal compliance policy with a documented strategy and governance process for taxation matters. This policy should include a strategy for maintaining an open, professional and transparent relationship with HMRC. The responsibility and accountability for the governance process rests with the boards of directors or equivalent senior officers. The Code also highlights that appropriate processes should be maintained to ensure that tax policy is taken into account in business decision making. To this end, the Code stresses that banks' in-house tax departments should play a critical role and that their opinion should not be ignored by business units. In the event that in-house tax departments disagree with business units, the Code suggests a documented appeals process to senior management. 2.3. Tax Planning The Code states that banks should not engage in tax planning other than that which supports genuine commercial activity. Where the bank acts as principal, transactions should not be structured in a way that will have tax results that are inconsistent with the underlying economic consequences, unless there exists specific legislation http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png EC Tax Review Kluwer Law International

United Kingdom, Italy, Finland

EC Tax Review , Volume 18 (5) – Oct 1, 2009

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Publisher
Kluwer Law International
Copyright
Copyright © Kluwer Law International
ISSN
0928-2750
Publisher site
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Abstract

REVIEW 2 0 0 9 ­5 ec Legislation TAX Code of Practice on Taxation for Banks 2.2. Governance The Code states that banks should have a formal compliance policy with a documented strategy and governance process for taxation matters. This policy should include a strategy for maintaining an open, professional and transparent relationship with HMRC. The responsibility and accountability for the governance process rests with the boards of directors or equivalent senior officers. The Code also highlights that appropriate processes should be maintained to ensure that tax policy is taken into account in business decision making. To this end, the Code stresses that banks' in-house tax departments should play a critical role and that their opinion should not be ignored by business units. In the event that in-house tax departments disagree with business units, the Code suggests a documented appeals process to senior management. 2.3. Tax Planning The Code states that banks should not engage in tax planning other than that which supports genuine commercial activity. Where the bank acts as principal, transactions should not be structured in a way that will have tax results that are inconsistent with the underlying economic consequences, unless there exists specific legislation

Journal

EC Tax ReviewKluwer Law International

Published: Oct 1, 2009

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