HMRC has published guidance concerning the two new offences relating to the failure to prevent the facilitation of tax evasion. The offences were introduced by the Criminal Finances Act 2017 and came into force on 30 September 2017.
The guidance details six principles for businesses to follow. It will be a defence for the company or organisation to show that it had in place procedures designed to prevent tax evasion at the time when the offence was committed.
The guidance aims to:
• provide guidance on how to assess the risk of the organisation’s representatives facilitating evasion
• help businesses to adopt effective systems to mitigate the risk of associated persons facilitating tax evasion
• provide assistance in considering whether the reasonable procedures defence would be available
• establish a greater understanding of the expectations in government so that businesses can assess the adequacy of their existing systems
• assist trade bodies in the formulation of more detailed sector-specific procedures.
The guidance can be found here.