Taxing Banks Fairly

Taxing Banks Fairly

Edited by Sajid Chaudhry and Andrew W Mullineux

Taxing Banks Fairly offers an ethical perspective on bank taxation and financial stability to complement the traditional political economy approach. It also considers how a bank levy or financial activities tax, could be used to ensure that big banks make a ‘true and fair’ contribution to their insurance by taxpayers. Covering a range of topics on bank and financial sector taxation, this book will prove a valuable resource for academics, policy makers and financial regulators.

Chapter 1: Introduction

Sajid M. Chaudhry and Andy Mullineux

Subjects: business and management, knowledge management, economics and finance, financial economics and regulation, money and banking, public finance


The AHRC-sponsored ‘FinCris’ project seeks to widen public understanding of the crisis and understanding among officials and regulatory and consumer bodies of the ethical issues raised by it; specifically, how the responsibilities for what went wrong create obligations to some of those badly affected by the crisis. The project is comprised of three workstreams. This edited volume reports the findings of the project workstream on the interplay between the regulation and taxation of banks. A second workstream investigates the ethical aspects of different forms of lending to people on low incomes from the perspective of social policy, for example addressing questions of access to finance, and what constitutes responsible and irresponsible bank lending and borrowing. The third workstream addresses the question of which institutions were responsible for the crisis itself, and whether individuals, including ordinary consumers and sub-prime borrowers, were also partly to blame. Preliminary conclusions to these investigations point to the importance of not allowing the size and scope of the international crisis to obscure genuine – and pivotal – cases of wrongdoing on the part of particular individuals or groups of individuals, particularly those embedded within the financial sector itself. The financial crisis is particularly important in the UK, where financial services constitute one of the largest economic sectors and one of the biggest sources of tax revenue (financial services contributed 9.8 percent of the UK’s total Gross Value Added (GVA) in 2012 and the financial sector contributed 12.1 percent of total government receipts in 2010–11).