We adopt the following approach in relation to our tax responsibilities:
- We are committed to the responsible management of our tax affairs
- We take a compliant approach and seek to pay the right amount of tax in the jurisdictions in which we operate, complete and submit accurate tax returns and pay tax due within the timeframes set by legislation
- We do not establish businesses in any jurisdiction with the sole or main purpose of gaining a tax advantage or to divert profits from higher tax rate jurisdictions and we operate policies to ensure that there is no artificial diversion of profits between high and low tax countries.
- We are committed to maintaining and improving tax transparency and comply with global initiatives in this regard
- We are open 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 frank dialogue with HM Revenue & Customs. All parts of the bank worldwide are expected to follow the Code of Practice
- Group Tax approval of new products, transactions or business proposals is required through the group’s risk governed sign-off processes. Our tax specialists ensure that we comply with tax law and practice, that transactions and business proposals are within tax risk appetite, and that we consult with HM Revenue & Customs and/or external advisors where necessary
- We will only undertake tax planning which supports genuine commercial activity and is compliant with the Code of Practice
- We have a low appetite for tax risk
- We have no tolerance for any activity relating to the criminal offence of tax evasion and we are committed to preventing the facilitation of tax evasion
More detail on our approach can be found in our Tax Strategy here:
Tax Payments in 2017 (to be updated by H1 2019)
• Contributed £1.75 billion in tax globally
• Contributed £1.55 billion tax to the UK compared to £1.41 billion in 2016
Country-by-country tax payments (to be updated by H1 2019)
In accordance with the European Commission’s Capital Requirement Directive IV, we disclose our full country-by-country tax payments online.
Please note that because of the way tax law operates, there is often a substantial difference between taxable profits and accounting profits.
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