The joint working proposals are set out in a letter sent to the Chancellor George Osborne, Andrew Tyrie, chair of the Treasury select committee and Lord Lawson, chair of the House of Lords’ Parliamentary Commission for Banking Standards (PCBS) .

This is in response to recommendations by the PCBS that the three organisations should jointly publish a paper setting out how they intend to bring about sharing of information and expertise within the existing rules; that the PRA consider using its powers to commission reports on a specific function of a bank’s business on behalf of HMRC; and that the National Audit Office (NAO) undertake a periodic review of how effectively the PRA uses its powers to promote information sharing.

The letter states that the organisations have agreed a number of operational changes to provide each of them with better access to information and expertise.

HMRC has drawn the line at joint working with the PRA. With regard to the PCBS’s recommendation that the PRA considers using its powers to commission reports on a specific function of a bank’s business on behalf of HMRC, the letter explains that HMRC believes that it already has sufficient powers to get the information they need to meet their objectives, including in areas highlighted by the PCBS such as tax risk management and financial transfer pricing. However, HMRC says it will continue to keep the powers under review.

The agreed changes include establishing clear lines of contact in each organisation to provide technical assistance in response to specific requests from each other that would help the requestor advance its objectives; holding regular joint meetings to enable them to consider on a timely basis any taxation, regulatory, prudential and consumer implications that may arise as a result of their policy work; and putting in place arrangements to ensure that the organisations bring to each other’s attention emerging trends/issues that might have an impact on their objectives.

Annex 2 of the letter sets out details of the types of information that will, as a result, be shared between the organisations.

In addition, a Memorandum of Understanding between HMRC and the FCA, and another between HMRC and the PRA, have been put in place.

The letter says the PRA welcomes the PCBS’s recommendation that the NAO carry out a periodic review of how effectively the PRA uses its powers to promote information sharing with HMRC. It adds that HMRC and the FCA suggest the extension of the review scope to include information sharing between the three organisations.

The letter is available at https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/375157/Branded_PCBS_Recommendation_100_Letter__Signed_.pdf