CIOT welcomes consultation on code of practice for taxation of banks
The Chartered Institute of Taxation (CIOT) has welcomed the consultation that has been announced for the Banking Code of Practice. The code was released today and is designed to ensure that banks follow the ‘spirit’, rather than the letter, of tax law.
The CIOT’s initial view is that much of the code reflects good governance and the need for an open and transparent relationship with HMRC which we support. However, the CIOT would prefer that the process of making tax law is improved so that it is clear to all what the intention of Parliament was and so codes seeking to establish what the intention might be are unnecessary.
Peter Fanning, CIOT Chief Executive, says:
“Defining the purpose of established law can be very difficult. The quantity of HMRC guidance is ample proof of this. Even in law, not everyone agrees. The challenge is to decide who decides what the ‘spirit’ of the law is and how they decide it.”
The CIOT will be responding in due course to the consultation.
Peter Fanning adds: “If future tax law is clear then following its ‘spirit’ will be much easier but establishing the ‘spirit’ of previous complex legislation will be a challenge.”
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