Tax Responsibilities and Payments

We adopt the following approach in relation to our tax responsibilities:

• We aim to pay the right amount of tax both in the UK and other jurisdictions where we operate, following the spirit as well as the letter of the law. 
• We aim to complete and submit accurate tax returns and pay tax due within the timeframes set by legislation. 
• We require all intra-group transactions to be priced on an arm’s length basis in line with internationally accepted transfer pricing standards and local tax laws.
• We support measures to improve tax transparency and aim to comply with global initiatives in this regard. 
• We aim to be transparent in our interaction with tax authorities. In the UK we have signed up to the UK Government’s Code of Practice on Taxation for Banks (‘the Code of Practice’) which commits us to obeying the spirit, as well as the letter of the law, and to maintaining an honest and open dialogue with HM Revenue & Customs. All parts of the Bank worldwide are expected to follow the Code of Practice.
• We have a low appetite for tax risk and through our internal risk management framework, we have put in place operational procedures, processes and controls to minimise the level of tax risk arising from our operations as far as reasonably possible and help us to fulfil our global tax responsibilities. 
• Our tax specialists review new products, transactions or business proposals through the Group’s risk governed sign-off processes. Our tax specialists aim to ensure that we comply with tax law and practice, that transactions and business proposals are within tax risk appetite, and that we consult with tax authorities and/or external advisors where necessary.
• We aim to operate in a tax efficient manner by claiming tax exemptions, reliefs, and incentives in line with the relevant legislation and its intended policy objectives and which are consistent with the operational objectives and economic substance of our business.
• We will only undertake tax planning which supports genuine economic and commercial activity, is based on reasonable interpretations of applicable law and is compliant with the Code of Practice. Any tax planning proposed is subject to a robust review and approval process.
• We do not promote products to our customers which we consider to be inconsistent with the spirit of the law.
• The Group has a zero-tolerance policy for knowingly facilitating tax evasion. Tax evasion is a criminal activity and our approach to anti-tax evasion can be found in our Financial Crime Statement (PDF, 205 KB).