BANKS COULD BE forced to reveal the extent of their corporation tax contributions as part of a parliamentary committee’s review on the sector.
The Treasury select committee will consider asking the banks to extract payroll taxes from the wider tax bill, the Telegraph has reported. This followed reports over the weekend about Barclays paying £113m in corporation tax out of a total tax bill of £2bn in 2009. The bank made £11.bn profits that year.
The annual reports of the partially state-owned banks – including Royal Bank of Scotland and the Lloyds Banking Group – are expected this week. Experts have said that their corporation tax will be lower because of the losses incurred through the unravelling of their toxic assets.
Former Liberal Democrat Treasury spokesman Lord Oakeshott said he would ask HM Revenue & Customs to reveal the extent to which the banks adhere to the code.
The select committee’s report on greater competition in the banking sector is expected shortly.