Building Transparent Tax Compliance by Banks
This comprehensive report focuses on the role of banks in providing aggressive tax planning arrangements and examines the nature of banking, complex structured financing transactions developed by banks, and how they are utilized by both banks and their clients. The report also delves into the internal governance processes banks employ to manage tax risk and the strategies adopted by various revenue authorities to address the challenges posed by banks.
Key Recommendations:
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Revenue Bodies' Role: Gain a thorough understanding of how individual banks manage tax risks, as robust risk management processes can enhance assurance regarding a bank's tax compliance. This insight aids revenue bodies in ensuring compliance and reducing tax evasion.
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Banks' Consideration: Encourage banks to incorporate improved relationships with revenue bodies into their business strategy. Such a partnership can offer benefits like early certainty, reduced compliance costs, and mitigated reputational risks.
The report also outlines best practices for both revenue bodies and banks to consider, aiming to build transparency in tax compliance within the banking sector. The full text is accessible online, offering a detailed exploration of these topics.
This publication serves as a valuable resource for tax administrators and financial institutions alike, serving as a catalyst for improving tax compliance within the banking sector—a critical taxpayer group.
