BKM509300 - Interaction of the Code with other measures: Code and Senior Accounting Officer regime

The Senior Accounting Officer (SAO) regime was introduced in 2009 to ensure large companies have the appropriate tax arrangements in place to deliver correct and complete tax returns. Unlike the Code it makes no judgement on the nature of the transactions those companies undertake. The Code and the SAO regime are seeking to address different issues: avoidance of tax and incorrect reporting of tax.

The Code applies to the bank and failure to keep the commitments under the Code may result in a bank being named. The SAO regime applies to the company or group but failure to meet its requirements may result in a personal penalty on the SAO. It is the SAO that failed in his duty and not the company of which he is a director or officer. However, where an SAO main duty failure penalty is imposed on the SAO of a bank which has adopted the Code, it is likely to be evidence of weaknesses in governance issues and may give rise to concerns under the Code.