On 16th January 2013, Professor Michael Devereux and Dr John Vella gave evidence before the Parliamentary Commission on Banking Standards (Panel on Tax, Audit and Accounting). The Commission is appointed by both Houses of Parliament to consider and report on: (i) professional standards and culture of the UK banking sector, taking account of regulatory and competition investigations into the LIBOR rate-setting process and (ii) lessons to be learned about corporate governance, transparency and conflicts of interest, and their implications for regulation and for Government policy. It will also make recommendations for legislative and other action.
Professor Devereux and Dr Vella gave evidence on the role of tax in relation to banking standards and culture. Amongst other things, they answered questions on the incentives provided by the tax system to banks in particular in relation to their capital structure, the role tax incentives played in the financial crisis, and tax avoidance by banks and possible methods to address it.
The written evidence submitted by Professor Devereux and Dr Vella can be found here: http://www.publications.parliament.uk/pa/jt201213/jtselect/jtpcbs/writev/panelontax/m31.htm
A webcast of the session can be found here :