RBS employees arrested in tax related investigation

A number of employees at UK banks along with others have been arrested as part of a tax-related investigation, according to a statement by UKs customs and revenue service. The statement provided no further details.

In a separate statement, Royal Bank of Scotland Group Plc, Britain's largest state- controlled bank, said it was co- operating with the HM Revenue & Customs (HMRC) inquiry.

According to a spokesman of the revenue service, as a result of an ongoing investigation into tax-related criminal offenses, HMRC had arrested a number of people, some of whom worked for UK banks.

The spokesperson asked not to be identified in line with department policy. Speaking over phone with Bloomberg, he said today the investigation related to the actions of the people arrested in relation to their own financial affairs and was not connected to the business activities of the banks.
The inquiry was in connection with the use of film finance plans to evade taxes, according to the Sunday Telegraph. The newspaper said film investment had become a common way to claim tax relief.

''We cannot comment on an ongoing investigation but are fully co-operating with HMRC,'' RBS said in an e-mailed statement today.

UK taxpayers had been allowed to claim tax relief by investing in film production, a practice that was limited to allow £25,000 pounds in tax relief a year unless they were actively involved in the film, according to The Telegraph.