OECD and officials from revenue bodies and the banking sector early this week met in the Italian capital to put their heads together on how to enhance the relationship between tax administrations and the banking industry and thus improve tax compliance.

Participants to the seminar “Developing the enhanced relationship in the banking sector” agreed on the need to strengthen co-operation among revenue bodies and the banking sector. Their discussions were based upon the experience of countries which have already implemented a new co-operative approach. The seminar addressed the role of banks in the current economic environment, the impact of recent regulatory changes on tax matters, and the experience of various stakeholders with co-operative compliance programmes. It also addressed issues such as those related to bank losses and how to determine the appropriate tax treatment of branches of foreign banks.

The Italian tax authorities and the national banking association announced that they will soon develop a code of tax practice for Italian banks, along the lines of that recently endorsed by the OECD Forum on Tax Administration.