Eric Daniels pushed taxation deterrence even after bailout

By Harry Wilson 1002PM GMT nineteen March 2010

Lloyds arch comparison manager Eric Daniels allegedly upheld taxation deterrence schemes Photo Tom Stockill

The bank, he alsio claimed, has one after another to make make make use of of of assertive taxation deterrence schemes even after usurpation �17bn in state support.

Giving justification at London make make use of of judiciary yesterday, Andrew Constantine, Lloyds TSB"s former head of taxation compliance, laid out how Mr Daniels had allegedly authorized taxation schemes that enabled the bank to equivocate essential billions of pounds in taxation given 2006, though he alleges the make make use of of had started earlier.

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Using what Mr Constantine described as "false accounting" and "unethical" taxation schemes, he pronounced Lloyds had in 2007 avoided essential at slightest �1bn in taxation by the make make make use of of of of assertive structures. More controversially, he claimed that even after the state had taken a 41pc in the bank, following the merger of HBOS, it had one after another to make make make use of of of a range of assertive measures to equivocate essential UK tax.

Between 2008 and 2009, Mr Constantine claims Lloyds done fake disclosures of the taxation position, claiming that HM Revenue & Customs had critical concerns about the bank"s stating of the taxation total and had spoken it a "major risk to the Exchequer" and saw it as one of the country"s five greatest taxation avoiders.

As well as Mr Daniels, who Mr Constantine claims greenlighted all the deterrence structures, he alleges that Lloyds financial director, Tim Tookey and his predeccessor Helen Weir, as well as Truett Tate, organisation comparison manager director, were piece of a organisation of comparison and center managers that set-up and ran the taxation deterrence schemes by the bank"s Structured Transaction Group, aided by their accountants PriceWaterhouseCoopers, as well as Ernst & Young.

Mr Constantine is suing Lloyds for some-more than �1m, claiming he was forced out after floating the alarm to his superiors on the bank"s activities, that he pronounced were "against the suggestion of the law". He is additionally claiming for age taste and astray dismissal.

In a statement, Lloyds pronounced it "strongly believes it complies with all of the obligations underneath taxation law, both in the UK and overseas" and pronounced it would "vigorously defend" itself opposite Mr Constantine"s claims.

"Like any organisation, we will find to revoke taxation stroke where it is unsentimental and suitable but we regularly imitate with all aspects of taxation regulations in all the jurisdictions inside of that we operate," pronounced the bank.

The Group maintains an open and pure discourse with HM Revenue & Customs. We have done competent supplies for all the taxation liabilities." The judiciary is approaching to interpretation subsequent week.