HMRC Issues Shutdown Petition Against The Bank Of London Group
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The Bank of London Group has been warned by UK’s tax office two days after its boss, Anthony Watson, stepped down as the firm’s Chief Executive Officer. His Majesty’s Revenue & Customs (HMRC) asked for the bank to be shut down because it hadn’t paid its debts.
This is a legal step that HMRC takes when a company doesn’t pay its taxes after being told to do so.
The Bank Of London Group Faces Challenges Amid Leadership Change
HMRC took this action right after The Bank of London said on Tuesday that Watson was stepping down from his role as Chief Executive Officer, which he had held for eight years. A source close to the bank said these two events were not connected.
The source also mentioned that the bank had a deal for funding that would last for many years. Watson will stay with the bank in a new role as “founder and senior adviser” and will still be a director of the bank’s parent company. The new Chief Executive Officer is Stephen Bell, who was the chief risk and compliance officer.
HMRC didn’t talk about this case in detail but said they try to work with companies who owe money. They only ask for a company to be shut down after trying other ways to deal with the debt.
A spokesperson for the bank said the issue was caused by a small mix-up inside the bank. They said the bank was up to date with all its tax payments. The bank also spoke with HMRC and said they are fixing the problem.
Dan Neidle, a tax expert, said this situation shows there may be serious problems with the bank’s management. He also said it was strange for the bank to say that people could contact HMRC for information about their tax payments, as HMRC doesn’t share such details.
The Bank Of London Faces Financial Struggles And Scrutiny
HMRC had listed The Bank of London as one of 11 UK banks that didn’t follow a voluntary code on taxes. This code was created to stop tax avoidance after the financial crisis.
The bank had raised £6.5 million in July and had been valued at $1.1 billion in February 2023. The bank’s latest report showed it lost £41.8 million in 2022, but it paid £7.9 million in taxes.
The bank’s auditor, Sedulo, said that tax laws could affect the business if the bank didn’t follow them. After signing off on the bank’s accounts, Sedulo quit as the auditor, and another firm, EY, took over.
Anthony Watson started The Bank of London in 2021 to provide services for businesses. It was only the second company in 250 years to start a clearing bank in the UK.
The bank doesn’t give loans but keeps all its money safe with the Bank of England. The bank says more than 4,500 businesses use its services. The bank’s deputy chairman is Peter Mandelson, a former government official.
