On Saturday 30th September 2017 a new corporate offence of failing to prevent the facilitation of tax evasion potentially imposes liability on employers as a result of their employees' actions.
An employer may from that date commit an offence under the new provisions of the Criminal Finances Act 2017 (CFA 2017) if it fails to prevent an employee, agent or any other person who is performing services for the organisation from criminally facilitating the evasion of tax, whether the tax is owed in the UK or in a foreign country.
An employer can be responsible for a person acting in his or her capacity as an employee; an agent acting in that capacity; or any other person who performs services for the relevant body who is acting in the capacity of performing such services.
That person commits a 'UK tax evasion facilitation offence' by being knowingly concerned in, or in taking steps with a view to, fraudulent tax evasion by another person; aiding, abetting, counselling or procuring the commission of a UK tax evasion offence; or being involved in the commission of an offence consisting of being knowingly concerned in, or in taking steps with a view to, the fraudulent evasion of a tax.
For further details of the provisions of the CFA 2017 please contact Gill Brown, at Phillips Solicitors on 01256 854605 or email firstname.lastname@example.org where she or another member of the Employment Team will be happy to help.