Are you prepared for the new corporate tax evasion offence?


The corporate offence of “failing to prevent the facilitation of tax evasion” came into force on 30 September 2017. Now corporations must ensure that they have developed a plan for implementing “reasonable prevention procedures”.

The offence, introduced under the Criminal Finances Act, makes corporations criminally liable in situations whereby:

  1. There has been criminal evasion of UK or non-UK tax (by either an individual or a legal entity);
  2. an individual, acting on behalf of a corporation, facilitated the tax evasion; and
  3. the corporation did not have reasonable prevention procedures in place (or it is unreasonable to expect such procedures to have been put in place).

The offence is strict liability; meaning that the knowledge or intention of the senior management is irrelevant. If convicted, corporations can face unlimited fines, on top of reputational damage and regulatory sanctions which come with a criminal conviction.

To read the full article click here.

More Articles

A banker’s Quincecare duty: practical implications of some recent judicial authority

In Barclays Bank plc v. Quincecare Ltd [1992] 4 All ER 363, it was held that “a banker must refrain from executing an order if and for as long as the banker is ‘put on inquiry’ in the sense that he has reasonable grounds (although not necessarily proof) for believing that the order is an attempt to misappropriate the funds of the company”.

Read more

Are you ready for strong customer authentication?

Fraud Insights: Protecting shareholder rights through unfair prejudice petitions

Fraud Insights: Worldwide freezing order continued despite allegations of delay