Alistair Darling attacks UK banking tax avoidance schemes
Alistair Darling has taken it upon himself to launch another attack on the UK banking sector and in particular the array of tax avoidance schemes which have been prevalent over the last few years. There is speculation that a clampdown on tax avoidance schemes used by the banking sector could come as soon as next month with the budget although initial suggestions are that the code will be "voluntary" with UK banks asked to comply "not just with the letter of the law but with the spirit of the law".
The fact that the UK government already has a significant stake in the UK banking sector could see something of a conflict of interest. Let us not forget the many of these banks still have a number of pension fund and private client investors who will be looking for the banks to announce profit as high as possible. There is also the fact that as and when the UK government decides to sell on its majority share stakes in the various UK banking operations, they will also want to get the best price for taxpayers and cast the industry prospects in the best light.
Whether this clampdown on tax avoidance, which includes a number of strategies which are perfectly legal, will actually work is very much open to debate.
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