CIOT slams bank taxation proposals

Date: 24th September 2009

Banks should not suffer from "wider agendas" when it comes to how they are taxed, the Chartered Institute of Taxation (CIOT) has said.

According to the institution, proposals from HM Revenue & Customs (HMRC) could be seen as biased due to these concerns and therefore "erode" a "key principle" of correct tax regimes.

CIOT issued the statement as part of its response to the tax authority's ongoing consultation on the proposed Code of Practice on bank levies.

The HMRC plans focus on the issue of tax avoidance among UK financial firms.

CIOT said that, in focusing on the banking sector alone, the plans would be effectively discriminatory.

John Whiting, tax policy director of the organisation, added: "If the code is to go ahead, there must also be comparable obligations on HMRC to operate the tax system in accordance with parliament's intentions.

"If this is to be a voluntary code, it should be for HMRC to adjust their approach, not penalise those who do not adopt it."