Corporations could be prosecuted if they fail to prevent staff from criminally facilitating tax evasion under a new HMRC law that came into effect on 30 September 2017.
It is already a crime to evade tax, or deliberately help another person to do so, but on behalf of the majority of taxpayers who pay what is due, the UK government is now taking an even firmer stance on corporate fraud in a move designed to drive a change in corporate culture. The Criminal Finances Act 2017 introduces two new criminal offences - one applying to the evasion of UK taxes and one applying to the evasion of foreign taxes. The offences 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. 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 taxes other than UK taxes are evaded, any company that is (a) incorporated under the law of the UK; (b) carrying out a business or part of a business in the UK, or (c) 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.
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Scam calls about tax evasion and avoidance investigation 18 October 2017
We have been made aware of an apparent scam in which someone calls purporting to be from HMRC, telling the individual that they are being investigated for tax evasion and avoidance.
The bogus caller is reported to be saying that they are telephoning because they have had a complaint about you and you are being investigated for tax evasion and avoidance. The fraudster is then saying that this will lead to prosecution action taken through the courts and to not ignore this message and that you must ask your lawyer to contact them immediately on a specified number.
We would encourage anyone who receives such a call to report it to HMRC. If you are an agent we would encourage you to warn your clients about this scam call.
We know of the following numbers that have been used to make some of these calls so if you have caller ID we would strongly recommend that you don’t answer the call.
0203 279 9120 0203 289 8210 0203 807 4351 0203 290 7104
Please report any misleading websites, emails, phone numbers, phone calls or text messages you think may be suspicious.
As with any other scam emails or communications HMRC warn against you giving out private information such as bank details or passwords, replying to text messages, downloading attachments or clicking on any links in emails if you are not absolutely certain they are genuine.
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Getting to the root of tax avoidance 16 October 2017
The Chartered Institute of Payroll Professionals
Policy News Journal
cipp.org.uk
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