The general election fast approaching. Self-employment has been high on the agenda, with several key political figures suggesting a review of off-payroll rules may well be on the horizon.
Criminal Finances Act 2017: what you need to know
In the aftermath of the Panama Papers scandal, the government gave law enforcement agencies new powers to seize suspected criminal property without bringing a prosecution.
From 30 September 2017, the Criminal Finances Act 2017 will make companies and partnerships criminally liable if they fail to prevent tax evasion by either a member of their staff or an external agent, even where the business was not involved in the act or was unaware of it.
The new rules target deliberate and dishonest behaviour. They do not create any new offences at the individual level - if activity would be considered to be tax evasion under existing law, then it will continue to be so. Likewise, if the activity would not currently be considered tax evasion, then the new law does not make it so.
We welcome the new act enforced by the Government. Compliance is at the very core of our business and activities.
A business may avoid criminal liability where it can show that it had implemented reasonable prevention procedures, or where it can show that in the circumstances it would have been unreasonable or unrealistic to have expected it to have had procedures in place.
What firms should do
Firms will have to ensure that they have reviewed their current practices and procedures to minimise any risks, and to put in place appropriate monitoring and training of staff at all levels. The Act effectively makes owners and managers responsible for preventing their staff and external agents and consultants from committing tax evasion. And the larger and more complex the business, the greater the risk that an activity may occur that could be caught.
If you want to find out more about the potential risks of the changes to the Criminal Finance Act then please call us now on 01252 704 030.