UK and International Tax news
Criminal Finances Act 2017
Saturday 30th September 2017
The Criminal Finances Act 2017 comes into effect from 30 September 2017 and introduces two new criminal offences, one applying to the evasion of UK taxes and the other applying to the evasion of foreign taxes.
The offences hold companies and partnerships criminally liable where they fail to prevent their employees, agents, or others who provide services on their behalf from criminally facilitating tax evasion.
This is a significant change from existing law under which they can only be found liable for criminally facilitating tax evasion if the most senior members of the organisation, typically the board of directors, are aware of the facilitation.
Where there is evasion of UK taxes, any company based anywhere in the world can be liable, regardless of whether it has a business presence in the UK.
Where overseas taxes are evaded, any UK incorporated company carrying out a business or part of a business in the UK, or has staff criminally facilitate evasion from within the UK, can be liable under the UK criminal law for failing to prevent their staff from criminally facilitating the evasion of foreign taxes.
HMRC will be responsible for investigating offences in relation to UK tax whilst the Serious Fraud Office will investigate offences in relation to foreign taxes. HMRC will work closely with the SFO to ensure a robust response to the facilitation of tax evasion.
HMRC uses the full range of both criminal and civil powers to investigate tax cheats and, to date, has been successful in over 90% of the prosecutions undertaken. HMRC will always looks to recover the proceeds from any crime committed.
If you would like further information on the above, please contact Keith Rushen on 0207 486 2378.
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