BKM501200 - Introduction: Code requirements
Banks that adopt the Code are expected to comply with the spirit of the law as well as its letter. Part 1 of the Code contains commitments to:
- adopt adequate governance to control the types of transactions they enter into;
- not undertake tax planning that aims to achieve a tax result that is contrary to the intentions of Parliament;
- comply fully with all their tax obligations; and
- maintain a transparent relationship with HMRC.
Parts 2, 3 and 4 of the Code expand upon the above principles and place specific obligations on banks to ensure these principles are being followed throughout the organisation.
Small banks are only required to adopt Part 1 of the Code. This means that while small banks are expected to fully adhere to the Code’s principles, they are not required by the Code to have a fully documented tax strategy. Small bank is defined at BKM502100.