Corporations could be prosecuted if they fail to prevent staff from criminally facilitating tax evasion under the Criminal Finances Act 2017.
The two new offences – one applying to UK taxes and the other to the evasion of foreign taxes – will hold corporations and partnerships criminally liable when they fail to prevent their employees, agents, or others who provide services on their behalf from criminally facilitating tax evasion.
Previously corporations were found liable only if the most senior members of the organisation – typically board directors – were aware of the facilitation.
‘The vast majority of businesses play by the rules but we must ensure that those that don’t are accountable for their actions,’ said the Financial Secretary to the Treasury, Mel Stride MP. ‘The new offences will ensure that companies doing business in the UK take reasonable steps to prevent their staff from facilitating tax evasion.’
The government has published guidance on what corporations and partnerships can do to prevent the criminal facilitation of tax evasion. This guidance can be foundhere.
