Even if I’m not involved in any wrong-doing?
Under legislation set to be introduced under the Criminal Finances Act 2017 businesses will become liable for criminal acts committed by employees who encourage or assist tax evasion by other individuals, e.g. suppliers or customers.
Under the new legislation, businesses will be liable even in cases where senior management were either not involved in, or unaware of the acts. These measures are expected to be implemented in September 2017 and will apply to both UK and non-UK taxes.
It is likely that these new rules will affect all businesses, but seems that the heaviest burden is likely to fall on professional services and financial companies.
All Boards will need to ensure that they have robust, well documented systems to ensure that thy prevent the facilitation of tax fraud by 3rd parties.
This is a further widening of responsibilities to commercial organisations to make them liable for 3rd party acts, and it is important that any potential risks are highlighted and acted on accordingly.
If you have any questions about tax affairs and how they impact on your business contact your local Burgis & Bullock office on 0845 177 5500 or using our on-line form.