Avoidance users to face wrath of FSA

The Financial Services Authority is considering imposing sanctions on bank bosses who overlook tax avoidance schemes in helping customers avoid paying tax.

Hector Sants, chief executive of the FSA, confirmed the issue would be included as part of a consultation paper expected in the autumn, according to guardian.co.uk

Lord Turner, chairman of the FSA, said: 'The whole overlap between tax and regulatory arbitrage and the fit and proper test is one we are still thinking about.'

In addition, he said tax avoidance is a complicated area, and the FSA is 'not a tax enforcement agency.'

HMRC said the department has good relations with the FSA, and will continue to liase with the regulator over issues, including taxation for banks.

Further Reading:

FSA should avoid ‘lengthy rule book’ says ICAEW

Wyman: auditors should help FSA to avert future meltdowns