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The Criminal Finance Act 2017


I've been on another tax course and as usual have returned feeling totally demoralised. The Criminal Finance Act of 2017 takes effect from 30 September 2017.

This allows the prosecution of any business including partnerships regardless of size if a person associated with it (employee contractor or agent) facilitates a tax evasion in the UK or overseas An example where this would bite is where work is carried out for an individual (who cannot claim back VAT) but the invoice is made out to his business where VAT is reclaimed. A prosecution under this, could mean unlimited fines, public record of the conviction and reputational damage. The offence can stick to the business even if the evasion was carried out by an employee and the principal was completely unaware. There is no requirement for there to be intention. The only get out is having documented procedures in place to prevent/minimise the risk: 1. Risk assessment 2. Proportionality 3. Top level commitment 4. Due diligence 5. Communication and training 6. Monitoring and reviewing This needs to be considered seriously When someone has invented a TARDIS everything will be fine