Bank bosses who allow their firms to devise schemes to help customers avoid paying tax could face sanctions from the Financial Services Authority, according to The Guardian.
The City regulator is considering its position on the government's new code of conduct on tax after Nigel Harper, banking adviser at HM Revenue & Customs, took the unusual decision of raising the matter the regulator's annual public meeting today.
The code, which is out for consultation, is intended to be voluntary and is designed to save the taxpayer billions of pounds lost through complex but legal avoidance schemes operated by some banks.
The government has already said bank that refuse to sign up or act against the "spirit" of the current tax laws will be subjected to heavier scrutiny from HMRC. Full story...
THE WORLD'S BIGGEST banks could be penalised with onerous surcharges, forcing them to set aside proportionately far more capital than smaller rivals, Lord Turner of Ecchinswell, chairman of the Financial Services Authority, suggested yesterday, reports The Times.
Details of his proposal, which would make it harder for banks to lend more, came as new figures showed that loans to British businesses suffered a further fall last month and as Alistair Darling disclosed that he will meet banks individually within a fortnight to press them to boost corporate lending.
Referring to discussions within the Basle Committee, the body that sets capital standards for banks around the world, Lord Turner gave the first clues as to how the largest and most important banks could be disadvantaged. Full story...
THE BRITISH ECONOMY came close to pulling out of its worst recession in decades in the second quarter, figures due to be published on Friday are expected to show.
A report in The Telegraph says City experts are forecasting the economy's contraction to have slowed to 0.3pc in the quarter to the end of June compared with a 2.4pc slump in the first three months after Christmas.
The figures will underline the degree to which the economy has stabilised after the dramatic freefall in the global economy that followed the collapse of Lehman Brothers. It was a view echoed by Charles Bean, the deputy governor of the Bank of England, who on his tour of the UK this month said that the economy may have reached a bottom. Full story...
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