Chairman of the Treasury Committee Andrew Tyrie has written to the chancellor, asking him to clarify whether banks can offset the costs of fines, and other payments they make at the behest of regulators, against their corporation tax bill (see www.bit.ly/1PfBUKR).
Following changes made by F(No. 2)A 2015, ‘banking companies’ are not entitled to deduct compensation paid to customers, other than a few exceptions in CTA 2009 s 133D. Tyrie is seeking confirmation that all payments imposed on banks by regulators, other than those excluded by s 133D, cannot be deemed to be ‘compensatory’ and therefore deductible under current tax legislation, whether they are made to individual customers, state authorities or any other bodies.
Commenting on the correspondence, Tyrie said: ‘Banks should pay for the full cost of their misconduct. It would be wholly unacceptable if taxpayers, having bailed out the banks in 2008, were to find themselves partly responsible for paying the banks’ fines.’
Chairman of the Treasury Committee Andrew Tyrie has written to the chancellor, asking him to clarify whether banks can offset the costs of fines, and other payments they make at the behest of regulators, against their corporation tax bill (see www.bit.ly/1PfBUKR).
Following changes made by F(No. 2)A 2015, ‘banking companies’ are not entitled to deduct compensation paid to customers, other than a few exceptions in CTA 2009 s 133D. Tyrie is seeking confirmation that all payments imposed on banks by regulators, other than those excluded by s 133D, cannot be deemed to be ‘compensatory’ and therefore deductible under current tax legislation, whether they are made to individual customers, state authorities or any other bodies.
Commenting on the correspondence, Tyrie said: ‘Banks should pay for the full cost of their misconduct. It would be wholly unacceptable if taxpayers, having bailed out the banks in 2008, were to find themselves partly responsible for paying the banks’ fines.’
