Is your business aware of the corporate criminal offence for tax evasion?

Only one in four businesses are aware of the tough corporate criminal offences relating to activity which is seen to facilitate tax evasion.
The Criminal Finances Act 2017 introduced new offences which mean companies and partnerships can be found liable for failing to prevent the criminal facilitation of tax evasion by anyone or any organisation that is providing a service for or on their behalf.
On 30 September 2017, the change in offences came into force; this Act applies to companies and partnerships of all sectors and sizes, for both onshore and offshore evasion.
Ipsos conducted a survey for HM Revenue and Customs (HMRC) which found that out of 1,000 UK companies and partnerships only 25 per cent had heard of the legislation.
Figures indicated that larger companies were more likely to be aware (58 per cent) than medium (30 per cent), small (26 per cent) and micros (24 per cent).
Compared to all industry sectors, financial and insurances firms were twice as likely to be aware of the changes.
Furthermore, those businesses that are aware of the changes demonstrated good knowledge of the corporate criminal offences within the Act.
In addition, 76 per cent of business knew that they could be found liable if they fail to prevent the facilitation of tax evasion by anyone providing a service on their behalf; for example, employees, suppliers, subcontractors or agents.
As a result of the tax evasion, 70 per cent of respondents were aware that if there was a successful prosecution there would be repercussions of unlimited fines, loss of regulatory approval or director qualification.
Despite HMRC stressing the need for companies to access the risk of being exposed to the facilitation of tax evasion, only 24 per cent have done so, and the majority did not have the risks formally documented.
Large businesses were three times as likely as micro businesses to have assessed this risk (57 per cent compared with 19 per cent).
Almost a quarter (23 per cent) of all businesses stated they had something in place to monitor and review policies and procedures.
However, only one in 10 businesses had undertaken any internal reviews into compliance and behaviour, and of those just two per cent had discovered misconduct as a result.
Concerningly, only eight per cent of business has organised training in the last 12 months that related to the corporate policies and procedures to prevent the facilitation of tax evasion within the organisation.

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