The Corporate Criminal Offences: Two Years On
FTI Consulting Authored Article First Published in Tax Journal
November 18, 2019
The Corporate Criminal Offences: Two Years OnDownload Article
This article examines what companies are doing in respect of the corporate offences of the failure to prevent the facilitation of tax evasion (CCO) being introduced two years ago. Despite the fact this is a risk for all companies, regardless of their size and sector, the level of awareness and preventative measures taken remains to be low.
Within the article, our experts explore the reasons for why more is not being done, and the steps we believe that companies should take now to ensure that they have fully addressed the requirements and are well positioned for the future.
"Two years after the introduction of the corporate offences of failure to prevent facilitation of tax evasion, awareness and preventative action continues to be low. All companies are within scope, regardless of their size or sector and potentially face unlimited financial penalties, so it would be prudent to ensure reasonable prevention procedures are in place. Many businesses appear to have been slow to act, perhaps because the legislation does not specify a deadline or filing requirement; the lack of clarity within the business over where responsibility rests; uncertainty over how best to engage advisers; or over-confidence that they are low risk.
However, it may be that some businesses are overestimating the work involved. HMRC expects businesses to take reasonable prevention procedures that are proportionate to the risk, so the steps expected need not be unduly burdensome."