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

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

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:

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auditors should help FSA to avert future meltdowns

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