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Corporate offences of failure to prevent the facilitation of tax evasion – time to act!
Two new corporate criminal offences for failure to prevent the facilitation of tax evasion ("FTP" offences) are currently progressing through the UK Parliament in the Criminal Finances Bill, which is expected to receive Royal Assent in the next few months. The FTP offences impose criminal liability on a company where it has failed to prevent the criminal facilitation of tax evasion by a "person associated" with the company – this is someone who provides services for, or on behalf of, the company (e.g. an employee, contractor or supplier). The aim of the offences is to encourage companies to put in place, and communicate, good corporate governance on preventing tax evasion, and this is achieved through a defence to the charge if a company has "reasonable prevention procedures" in place.
Corporate_offences_of_failure_to_prevent_facilitation_of_tax_evasion.pdf