The financial and economic crisis had a devastating impact on bank profits, with loss-making
banks reporting global commercial losses of around USD 400 billion in 2008. This
comprehensive report sets the market context for bank losses and provides an overview
of the tax treatment of such losses in 17 OECD countries; describes the tax risks
that arise in relation to bank losses from the perspective of both banks and revenue
bodies; outlines the incentives that give rise to those risks; and describes the tools
revenue bodies have to manage these potential compliance risks. It concludes with
recommendations for revenue bodies and for banks on how risks involving bank losses
can best be managed and reduced.