Rules and codes

I am still trying to get my head around the way the Revenue want to deal with the banks.

They are setting up an agreed code of conduct about tax matters, so that banks will not only comply with the tax legislation, but also not do anything which might be considered unconscionable by the public at large.

The recent scandal over MPs expenses has shown how complying with the rules may not be enough to satisfy the public at large, but I cannot see how a "code" can operate for what is a small number of very large businesses. What happens if the code is broken? If the law has been broken, then the Revenue can take them to court, but if it is just the code that is broken, all they can do is complain.

What effect will the complaint have? Some people (possibly the smaller customers) will take their business away in disgust. Others may admire the bank's approach to tax and decide this just the sort of people they want to do business with!

But because there are only a few big banks, it is difficult to see how any code can have a real effect if the banks decide not to comply. There are enough MPs for a few to lose their jobs over the expenses scandals - I do not think there are enough banks for any to lose theirs over a breach of a code.