Corporate banking giants sign up to government tax code

The UK's 15 biggest corporate banking firms have adopted the Treasury's Code of Practice on Taxation.

Previously, just four had agreed to follow the new rules but last month saw all of them meet the deadline to comply set a year ago by HM Revenue & Customs (HMRC).

The code states tax must be integrated into the financial institutions' decision-making and requires them to work collaboratively with HMRC to develop transparent relationships.

It also instructs the banks, which include Barclays, Deutsche Bank and UBS, not to develop tax plans that contradict the aims of the government.

"Alongside the bank levy, this shows that the coalition government is taking action to ensure banks pay their fair share," chancellor of the exchequer George Osborne commented.

The bank levy, which starts at 0.04 per cent for the first year, will be applied to the balance sheets of UK financial organisations with aggregate liabilities of £20 billion or more from January 1st 2011. ADNFCR-2318-ID-800268586-ADNFCR