As part of its clampdown on tax avoidance, HMRC has published a consultation on the code of practice on taxation for banks.

The Strengthening the Code of Practice on Taxation for Banks consultation is open for comment until 16 August 2013.

The code is designed to change the attitudes and behaviour of banks towards avoidance, says HMRC, adding that 'given their position as potential users, promoters and funders of tax avoidance', banks should adopt a more robust approach to compliance. It was first introduced in 2009 and strengthened by the government in 2010.

To further strengthen the code and ensure that it remains as effective as possible for the future, this consultation focuses on the governance process around determining non-compliance: the processes and criteria by which a decision to name a bank as being non-compliant will be made; and the nature of the report to be published by HMRC.

It also considers the timescale for banks to adopt or reaffirm their adoption of their code commitments in light of these strengthened features.

The consultation does not include any proposals on the content of the code itself as it is felt that the commitments remain appropriate and that the wording and concepts are now well understood by banks and practitioners. The consultation is available HERE