Banks and officials move towards better compliance relationship

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Banks and officials move towards better compliance relationship

Tax compliance in the banking sector has become a top priority for revenue authorities since the global economic turmoil began in 2008 and a meeting in Rome this week emphasised the point.

The head of the Italian Banking Association (ABI) announced at the meeting that his organisation and Agenzia delle entrate, the Italian Revenue Agency, would work together to produce a code of conduct for banks.

"A code of conduct will help to achieve a right balance between the need to reduce the incentives towards aggressive tax planning and promote certainty and predictability for taxpayers," Giovanni Sabatini, the ABI’s director-general, said.

The meeting brought together revenue agencies, banks and their industry representatives, and the OECD, for two days of discussion on developing the enhanced relationship in the banking sector.

The enhanced relationship refers to the work done by the OECD’s Forum on Tax Administration to create a new way of working between revenue officials and taxpayers based on “a mutual understanding of each party’s needs and aspirations, the development of the tools and techniques most appropriate for achieving these, and a path to implementing what needs to be done”.

This week’s meeting looked at the role of banks in the economy now, the impact of recent regulatory changes on tax matters, and the experience of various stakeholders with cooperative compliance programmes. Delegates also discussed issues such as those related to bank losses and how to determine the appropriate tax treatment of branches of foreign banks.

“It is important for tax authorities to adopt a balanced approach: zero tolerance for aggressive tax planning, but at the same time impartiality and fairness in evaluating legitimate tax planning. More in general, an approach aimed at giving certainty to taxpayers,” Attilio Befera, General Commissioner of Agenzia delle entrate said in his opening remarks to the meeting.

Jeffrey Owens emphasised the value of cooperative compliance.

“Cooperative compliance initiatives benefit both governments and taxpayers through fewer routine audits, increased transparency, a positive impact on compliance culture in general and of course more revenue: a win-win situation,” said the director of the OECD’s Centre for Tax Policy and Administration.





more across site & shared bottom lb ros

More from across our site

Awards
Submit your nominations to this year's WIBL EMEA Awards by 6 February 2026
Defending loss situations in TP is not about denying the existence of losses but about showing, through proactive measures, that the losses reflect genuine commercial realities
Further empowerment of HMRC enforcement has been praised, but the pre-Budget OBR leak was described as ‘shambolic’
Michel Braun of WTS Digital reviews ITR’s inaugural AI in tax event, and concludes that AI will enhance, not replace, the tax professional
The report is solid and balanced as it correctly underscores the ambitious institutional redesign that Brazil has undertaken in adopting a dual VAT model, experts tell ITR
The Brazilian law firm partner warns against going independent too early, considers the weight of political pressure, and tells ITR what makes tax cool
The lessons from Ireland are clear: selective, targeted, and credible fiscal incentives can unlock supply and investment
The ITR in-house award winner delves into his dramatic novelisation of tax transformation, and declares that 'tax doesn’t need AI right now'
Recent news of job cuts at EY is symptomatic of how the PwC controversy has tarnished the reputation of the entire ‘big four’
Experts reportedly discussed extending the safe harbour to 2027 to give countries more time to legislate; in other news, Baker McKenzie and Greenberg Traurig made senior tax hires
Gift this article