The financial and economic crisis had a devastating impact on bank profits, with loss-making banks reporting global commercial losses of around USD 400 billion in 2008.  This comprehensive report sets the market context for bank losses and provides an overview of the tax treatment of such losses in 17 OECD countries; describes the tax risks that arise in relation to bank losses from the perspective of both banks and revenue bodies; outlines the incentives that give rise to those risks; and describes the tools revenue bodies have to manage these potential compliance risks. It concludes with recommendations for revenue bodies and for banks on how risks involving bank losses can best be managed and reduced.

Foreword
Executive Summary
Chapter 1. Setting the context for current levels of bank tax losses
Chapter 2. Potential scale/fiscal cost of banks’ tax losses
Chapter 3. Summary of country rules in relation to taxation of bank losses
Chapter 4. Main issues for banks in relation to tax losses
Chapter 5. Compliance/tax risk issues for revenue bodies in relation to bank tax losses
Chapter 6. Tools available to revenue bodies to address compliance risks in relation to bank tax losses
Chapter 7. Conclusions and recommendations
Annex A. Country rules in relation to taxation of bank losses
Glossary of acronyms and technical terms