CRIMINAL FINANCES ACT 2017: FAILURE TO PREVENT TAX EVASION

On 2nd January, Greenberg Traurig published an article on the new offences introduced by 2017 Act) which, although widely publicised in the months leading up to its commencement, it says have received little attention since from commentators and, seemingly, the enforcement authorities.  The new offences target criminalising a corporate entity or partnership’s (broadly, a ‘relevant body’) failure to prevent the facilitation of tax evasion by persons acting for or on behalf of it, as an employee, agent, or a person performing services for or on behalf of the company.  It points out that a complete statutory defence exists where prevention procedures were in place.  The government has produced “Tackling Tax Evasion”, guidance which includes 6 ‘guiding principles’ to inform facilitation-prevention procedures.  It also looks at what could amount to “facilitation”.  It points out that since these provisions came into force in September 2017, neither the SFO nor the CPS has prosecuted any organisations for either offence.

https://www.gtlaw.com/en/insights/2019/failure-to-prevent-tax-evasion-forgotten-but-not-gone

The guidance is available at –

https://www.gtlaw.com/-/media/files/insights/alerts/2019/1/gt-advisory_failure-to-prevent-tax-evasion-forgotten-but-not-gone.pdf

Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

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