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Page last updated at 15:58 GMT, Monday, 2 February 2009
Northern Rock's comment on Granite

In Panorama: Tax Me If You Can, the programme explored Northern Rock's use of Jersey for its investment vehicle, Granite. Below is Northern Rock's response:

"The purpose and structure of Granite has been publicly disclosed in Northern Rock's accounts each year since Granite was established.

Detailed reports on Granite are published on a monthly basis and are available on the company's website.

The relevant regulators, including the FSA, were fully aware of the Granite structure.

While the Granite companies are based in Jersey, they are UK resident for tax purposes and are, therefore, subject to full UK corporation tax, along with all other Northern Rock companies.

In line with other companies, establishing Granite in Jersey meant there was a VAT saving on issue costs.

No further issuance from Granite is planned and it will wind down over time."

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