Commentary

A7.435 Corporate offences for failing to prevent facilitation of tax evasion

Administration and compliance

A7.435 Corporate offences for failing to prevent facilitation of tax evasion

A7.435 Corporate offences for failing to prevent facilitation of tax evasion

From 30 September 2017 onwards, an offence will be committed where a relevant body fails to prevent an associated person criminally facilitating the evasion of a tax by another person, and this will be the case whether the tax evaded is owed in the UK or in a foreign country1. Thus, criminal liability is attributed to relevant bodies for the criminal acts of its associates.

TermDefinition2
Relevant bodyA relevant body is a body corporate or partnership (including a limited partnership) wherever incorporated or formed
Associated personAn associated person is one who performs services for or on behalf of that relevant body, eg as an employee, agent, contractor, sub‐contractor, or consultant.
The question as to whether a person is performing services for or on behalf of an organisation is to be determined by reference to all the relevant circumstances and not merely by reference to the nature of the relationship between that person and the organisation.

The corporate offences concentrates on who is held to account, by focussing on the failure to prevent the

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial