HMRC investigating Barclays taxation avoidance

Date: 17th March 2009

The government is investigating Barclays over alleged taxation avoidance schemes, it has been reported.

According to the Guardian, the lender may have been utilising a number of international loans to allegedly avoid taxation payments.

HM Revenue and Customs (HMRC) disclosed that it was investigating similar instances of avoidance, but refused to mention Barclays specifically.

"We have received papers relating to allegations of tax avoidance in the banking industry which we are studying carefully," HMRC said in a statement.

As reported by the Guardian, Barclays' response read: "Project Knight was voluntarily and fully disclosed to HMRC, though there was no statutory obligation to do so."

The investigation is said to have come to light after a Barclays insider passed documents onto the Liberal Democrats' treasury spokesman Vince Cable.

Earlier this week, the Forum of Private Business's recession barometer revealed that restricted lending from banks such as Barclays was still a major issue for small firms.