BKM507650 - HMRC Operation of the Code: Relationship

Examples of what a Code compliant relationship looks like
  1. Where HMRC is conducting enquiries it will take the time to fully explain the risks and suggest to the bank the information that it thinks could be used to address those risks. HMRC expects banks that have adopted the Code to be transparent and proactive in their relationship with HMRC.
  2. »Ê¹ÚÌåÓýapp bank fully discloses significant uncertainties re tax matters.
  3. »Ê¹ÚÌåÓýapp bank focuses on significant issues when making disclosures to or seeking clearances from HMRC.
  4. »Ê¹ÚÌåÓýapp bank seeks to resolve issues before returns are filed where practicable.
  5. »Ê¹ÚÌåÓýapp bank engages in a co-operative, supportive and professional manner.
  6. »Ê¹ÚÌåÓýapp bank works collaboratively with HMRC.
  7. »Ê¹ÚÌåÓýapp bank is fully committed to the undertakings it has given under the Code.
  8. »Ê¹ÚÌåÓýapp bank is fully committed to a shared plan to resolve any delivery concerns.

HMRC would have concerns where a bank fell into any one of the examples below.

Examples of where a bank’s relationship with HMRC may give cause for concern
  1. »Ê¹ÚÌåÓýapp bank exploits the information bias between HMRC and the bank by answering only the narrow question asked without considering whether a broader explanation might be more appropriate and useful to HMRC.
  2. »Ê¹ÚÌåÓýapp bank fails to disclose fully significant uncertainties regarding tax matters.
  3. »Ê¹ÚÌåÓýapp bank fails to focus on significant issues.
  4. »Ê¹ÚÌåÓýapp bank does not seek to resolve issues where practicable before returns are filed.
  5. »Ê¹ÚÌåÓýapp bank does not engage with HMRC in a co-operative, supportive and professional manner.
  6. »Ê¹ÚÌåÓýapp bank is not working collaboratively with HMRC.
  7. »Ê¹ÚÌåÓýapp bank is not fully committed to the undertakings it has given under the Code. In particular the bank has provided misleading information or otherwise concealed information either at the time a transaction was undertaken or in seeking to address concerns in respect of that transaction.
  8. »Ê¹ÚÌåÓýapp bank is not fully committed to a shared plan to resolve any delivery concerns.

See BKM507700 for an example of concerns over a bank’s relationship with HMRC.