Chancellor George Osborne has pledged to force the remaining banks to sign the code of conduct
The only bank without substantial state ownership to sign the government’s code of conduct on taxation is Standard Chartered, the BBC has learned.
Three others, Lloyds Banking Group, RBS and Northern Rock, have also signed.
Chancellor George Osborne has said he would force the remaining 11 of the 15 largest banks to sign up to the code.
It recommends that banks adhere to the spirit rather than just the letter of the law when advising their clients regarding tax avoidance schemes.
The code was published a few months after the government had directly and indirectly supported the banking sector with £850bn of taxpayers’ money.
Its basis was to encourage banks to consider the wider implications for the economy of their actions, including advice given to customers to minimise payment of tax in the UK.
Apart from banks with substantial taxpayer stakes such as Lloyds Banking Group, RBS and Northern Rock, just one other bank has signed up to the code – Standard Chartered – and it has only a modest presence in the UK.
The banks which have so far failed to join the scheme include Barclays, Santander and HSBC, which have substantial operations in the UK – and have indirectly benefited from taxpayer support, says BBC business correspondent Joe Lynam.
Mr Osborne said he compel all major banks operating in the UK to sign up from next month.
The British Bankers’ Association has said its members “would continue to work with HM Revenue & Customs on issues relating to tax”.
The Labour government introduced the code – stipulating minimum standards of tax compliance – in 2009.
It followed reports of banks participating in large scale tax avoidance schemes using a series of complex transactions and financial instruments.
The code calls on banks to ensure that their tax obligations and those of their customers are observed – and that they do not go out of their way to avoid tax for themselves or clients.
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