HMRC has begun consulting on draft legislation concerning the introduction of a corporate offence of failing to prevent the criminal facilitation of tax evasion.
The government’s intention is for the offence to apply to:
- UK companies which fail to prevent those who act on their behalf from criminally facilitating a UK tax loss
- non-UK companies who fail to prevent those who act on their behalf from criminally facilitating a UK tax loss
- UK based companies who fail to prevent those who act on their behalf from criminally facilitating a tax loss overseas where the laws in place are equivalent to provisions in the UK.
The consultation closes on 10 July 2016 and is available to view here.