Corporates are facing the regulatory scrutiny once reserved for banks. Gideon Sanitt (Macfarlanes) considers the treatment of the costs of such investigations.
On 5 February 2016 Andrew Tyrie chair of the Treasury Committee wrote to George Osborne seeking confirmation that: ‘payments imposed on banks by regulators … cannot be deemed to be “compensatory” and therefore deductible’.
Mr Tyrie’s concern was that taxpayers were bearing part of the burden of payments imposed by regulators even where the bank had committed a breach of regulations.
Finance (No. 2) Act 2015 s 18 introduced rules (CTA 2009 ss 133A–133N) limiting the ability of banks to deduct compensation payments to customers; and deeming them to receive taxable amounts (equal to 10% of any non-deductible payment) in order to offset deductions for associated administrative costs. Mr Tyrie’s concern (in...
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Corporates are facing the regulatory scrutiny once reserved for banks. Gideon Sanitt (Macfarlanes) considers the treatment of the costs of such investigations.
On 5 February 2016 Andrew Tyrie chair of the Treasury Committee wrote to George Osborne seeking confirmation that: ‘payments imposed on banks by regulators … cannot be deemed to be “compensatory” and therefore deductible’.
Mr Tyrie’s concern was that taxpayers were bearing part of the burden of payments imposed by regulators even where the bank had committed a breach of regulations.
Finance (No. 2) Act 2015 s 18 introduced rules (CTA 2009 ss 133A–133N) limiting the ability of banks to deduct compensation payments to customers; and deeming them to receive taxable amounts (equal to 10% of any non-deductible payment) in order to offset deductions for associated administrative costs. Mr Tyrie’s concern (in...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
.jpg?sfvrsn=335a554c_0 "300 x 250 (MPU)")