Criminal Finances Act 2017

Published / Last Updated on 07/10/2017

HMRC Investigates global firmCriminal Finances Act 2017

Companies may be prosecuted if they fail to prevent their employees staff from criminally facilitating tax evasion.

The Criminal Finances Act 2017 came into force last week and whilst it is already illegal to evade UK tax or help somebody else to evade UK tax, it is now illegal to evade or help somebody else to evade UK or Foreign taxes.

In addition, companies can now also be prosecuted if they do not have adequate procedures and compliance checks to prevent employees from doing the same.

Even foreign companies with no UK connection may be prosecuted where there is evasion of UK taxes regardless of whether it has a business presence in the UK.