Barclays Investigated for Alleged Tax Dodging

Britain's tax office said Tuesday it is investigating claims by a whistleblower that Barclays, the country's third largest bank, has allegedly been planning to dodge taxes.

"We have received papers relating to allegations of tax avoidance in the banking industry which we are studying carefully," HM Revenue & Customs said.

The Guardian newspaper reported on the weekend that the documents reveal the existence of a scheme codenamed Project Knight, which appeared to be an attempt to obtain tax relief in different countries.

The newspaper said the 2007 plan was created by a team within Barclays Capital, a subsidiary of the bank, to legally avoid tax.