Addressing Tax Risks Involving Bank Losses
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.
Published on September 15, 2010
TABLE OF CONTENTS
| Foreword | |
| Executive Summary | |
| Setting the context for current levels of bank tax losses | |
| Potential scale/fiscal cost of banks' tax losses | |
| Summary of country rules in relation to taxation of bank losses | |
| Main issues for banks in relation to tax losses | |
| Compliance/tax risk issues for revenue bodies in relation to bank tax losses | |
| Tools available to revenue bodies to address compliance risks in relation to bank tax losses | |
| Conclusions and recommendations | |
| Annex A. Country rules in relation to taxation of bank losses | |
| Glossary of acronyms and technical terms |
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