New Tax Evasion Offences Now in Force

Two new criminal offences introduced under the Criminal Finances Act 2017 have recently come into force. One of these offences applies to the evasion of UK taxes and the other applies to the evasion of foreign taxes.

It was already a crime to evade tax, or deliberately help another person to do so, but the UK Government has decided to take an even firmer stance on corporate fraud in a move that is says is designed to drive a change in corporate culture.

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 previous law under which they could only be found liable for criminally facilitating tax evasion if the most senior members of the organisation – typically the board of directors – were aware of the facilitation.

“Tax evasion is a crime and takes away from the money we need to fund our vital public services,” explained the Financial Secretary to the Treasury, Mel Stride MP. “The vast majority of businesses play by the rules but we must ensure that those that don’t are accountable for their actions.”

"The new offences will ensure that companies doing business in the UK take reasonable steps to prevent their staff from facilitating tax evasion,” he added.

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