BKM506200 - Governance protocol: process for determining non-compliance

The Protocol sets out in detail the way in which HMRC will interact with a bank where it has concerns about a bank’s compliance with its commitments under the Code. This covers the role of the CCM or equivalent and the escalation route where HMRC suspects that a bank may not have met its commitments under the Code. It also covers the roles of the HMRC Tax Disputes Resolution Board (“TDRB”), an appointed “Independent Reviewer” and the HMRC Commissioners. In addition, it provides indicative timescales for banks to make representations.

This guidance does not repeat the detailed information within the Protocol but the following pages include more on:

• when a case will be escalated to HMRC directors (BKM506300)
• the rationale for not normally escalating single instances of tax planning where HMRC regards the tax outcome as contrary to the intentions of Parliament (BKM506400)
• what is a potential GAAR transaction (BKM506500)
• revisiting a Code decision following GAAR counteraction (BKM506600)
• the role of the Independent Reviewer (BKM506700)
• the circumstances where HMRC Commissioners can override the Independent Reviewer (BKM506800)
• the impact of a criminal investigation on the escalation process (BKM506900)