05 Sep 2017
A new corporate offence of failing to prevent the facilitation of tax evasion will come into force on 30 September 2017 under the Criminal Finances Act 2017.
Under the legislation, a relevant body, (B), which can be either a company or a partnership (including limited liability partnerships), is guilty of an offence if a person commits a UK tax evasion facilitation offence when acting in the capacity of a person associated with B. Individuals can’t be charged with the corporate offence. A person can be associated with B if they’re an employee acting in that capacity, an agent acting in that capacity or any other person who performs services for and on behalf of B, e.g. a contractor. The corporate offence is punishable by an unlimited fine.
What this means in practice is that if one of your customers is guilty of criminal tax evasion and a person associated with your business, such as one of your employees, acts dishonestly to aid in that tax evasion, you can be guilty of the corporate offence.
However, it’s a defence for B to prove that, when the UK tax evasion facilitation offence was committed, it had reasonable prevention procedures in place, i.e. procedures designed to prevent associated persons from committing UK tax evasion facilitation offences. If, therefore, you can show that your business has put in place a system of reasonable prevention procedures that identify and mitigate your tax evasion facilitation risks, you should have a defence to the criminal offence. What reasonable procedures you need to put in place will be proportionate to your level of risk, and this is likely to be lower for small businesses. The government has published guidance which provides useful information on identifying and assessing the risks and putting reasonable procedures in place to tackle them.
Vada Studios is a very successful music recording facility. The business had outgrown their existing premises, and had a vision to create one of the top residential recording studios in the UK.
A highly successful restaurant, butcher and retail business.
GJA have been the retained accountants for this property investment and development group for over 20 years. Imminently due to dissolve companies.
Proco approached us with an idea of becoming a distributor of a high-end product in the UK, supplying vinyl nationally.
In 2008 Tom Floate left his employer to set up his own business providing website services. Initially forming a partnership with his wife Rachel, they began trading IO Studios from their home office.
Barry the Butcher is a very successful wholesale butchery and retail business.
Grenfell has a broad range of experience and knowledge, working with clients from many different industry sectors. Grenfell is also the senior audit partner in the practice.
Chris works with a diverse profile of owner managed businesses to assist them to grow and retain wealth. Although Chris works with clients from a wide range of sectors, he has particular expertise in property, catering, consultancy and professional services.
Managing Director ACMA
Alex has worked for Grenfell James since 2002 and became a director in 2013. Overseeing our internal operations, he manages the flow of work and ensures we hit our strict deadlines. Alex also manages a portfolio of clients, with expertise in manufacturing and service businesses.
Operational Director MAAT
David has worked for Grenfell James since 2006. He heads up our tax team and is highly experienced with expertise in different industries and sectors.
Tax Director ACCA
Hannah qualified in 2016, having worked for the company since 2009. She acts as a client manager for a range of businesses, with expert knowledge of the equestrian and rural sector. Hannah also manages our payroll team.
Client Manager ACCA
NPD Design Consultants Ltd
Mr I Cameron
Mckechnies independent tea and coffee bar.
Paul Stanley. A S Contracts Ltd.
Mr J McCarthy
Regent Square Estates
Roy Ferguson. The Perfect Cosmetics Company.
Proco Coatings & Laminates
Dean. Wootton IT
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