Avoidance users to face wrath of FSA
Sanctions await bank bosses who allow avoidance schemes
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.