Ensure you are ready for the new corporate offence of failure to prevent facilitation of tax evasion


    From 30 September 2017, if someone in your organisation facilitates tax evasion and you don’t have reasonable prevention procedures, you could be faced with unlimited fines, not to mention reputational damage.

    The Criminal Finances Act 2017 introduces a new corporate failure-to-prevent offence relating to the facilitation of tax evasion. This is supported by HMRC guidance, centering around six core principles that should inform your prevention procedures. It’s all very reminiscent of the Bribery Act regime but with subtle differences just to keep you on your toes, eg ‘adequate’ prevention procedures becomes ‘such prevention procedures as was reasonable in all the circumstances to expect’.

    It’s not just your employees you need to worry about. You’ll also be liable for tax evasion facilitation committed on your behalf by an agent or intermediary, so you’ll have to factor this into existing due diligence arrangements. You’ll probably also want suitable contract clauses with your suppliers.

    Don’t assume this new offence is only relevant to tax advisers and financial institutions. You may think your organisation doesn’t need prevention procedures, but HMRC guidance makes it clear that you’re expected to conduct a formal risk assessment before reaching this conclusion and be able to justify your reasoning.

    LexisNexis has created a checklist which:

    • Pulls together requirements in the Criminal Finances Act 2017 (CFA 2017) and associated guidance relating to tax evasion facilitation prevention procedures. It also contains best practice recommended actions
    • Signposts relevant Precedents you can use or adapt to comply with these requirements and recommendations
    • You can mark whether you have completed the requirement and also insert comments or note action points

    Key benefits of using the checklist:

    • Free up valuable time - our checklist pulls together everything in one place adopting the six key principles set out in HMRC guidance. It also provides a structured approach so the risk assessment can be completed more efficiently
    • Helps provide an audit trail - documents the risk assessment to provide an audit trail and support any policy decisions regarding the implementation of a new regime
    • Provides peace of mind and confidence your business is compliant - the checklist ensures you have considered all aspects and follow best practice recommendations
    • Helps you add value to your business - from managing the risk assessment and next step recommendations in-house, saving on external counsel fees, to proactively managing risk and placing your business in a position to turn a crisis into a business opportunity through proper preparation

    Download an extract from the checklist*

    Introducing LexisPSL Risk & Compliance

    Our new module provides an unparalleled range of practical guidance, tools and templates to help you both deal with ever-increasing and ever-shifting compliance requirements and deliver better value and commercial outcomes by understanding the true risk culture of your organisation to safeguard your business’ reputation
    Unlike other solutions, LexisPSL Risk and Compliance is uniquely tailored to support in-house lawyers, supporting you to:

    • Put in place practical and effective systems and processes to identify and manage risk with a large suite of precedents including policies, checklists, registers, forms, workflows, panic sheets and breach plans
    • Understand the ‘the what and the why’ with practical guidance covering a breadth of topics on key areas including crisis management, data protection, dawn raids and external investigations, health & safety, anti-bribery and corruption and slavery
    • Stay up-to-date with the constant churn of regulatory change when day-to-day operational compliance demand your full attention and often takes up all your time with email news alertsmonthly highlights and forecasts 
    • Gain invaluable insight into doing business abroad with cross-border compliance content, split by country or compliance area

    Benefits to you:

    • Focus on delivering value to your business as our practice notes guide you on what you need to know, what you need to do and most importantly how to comply with all the rules and regulations
    • Reduce budget costs by being empowered to handle more matters in-house
    • Turn risk into business opportunity by being well prepared with monthly risk and compliance forecast alerts to ensure you know what’s coming
    • Be certain you’ve got everything covered and spot any gaps at a glance with our range of templates and checklists providing comprehensive coverage over all key areas of risk and compliance

    To see how LexisPSL Risk and Compliance can support you manage the compliance burden and protect your organisation’s reputation, complete the form alongside to arrange a demo.

        Request a demo of Risk & Compliance module

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