RBS – where was the tax dodging in the accounts?

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Any quoted company has to file accounts that include a tax reconciliation statement.

The statement is meant to explain the difference between the tax rate in the accounts and the statutory tax rate.

RBS has admitted tax avoidance of £500 million today.

This is its tax reconciliation statement in its 2008 accounts:

 

The only line in there where this could hide would be ‘non taxable items’. They’re a credit — the only one there is year in year out.

Is that good enough?

If this is where the tax avoidance is hidden is that a set of accounts really giving a true and fair view?

I’ll say this to Deloitte LLP: this is ‘just rubbish’.

And I now have the satisfaction of knowing I’m right and Deloitte LLP is wrong.