Do we have to watch out for structures that facilitate Tax evasion?
A: SenseCheck
- 1 Yes
- 0 No
- 0 Other
- 11 Aug 2023
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Yes
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Complex
From the Trust or Company service provider guidance for ML supervision issued by HMRC:
The Criminal Finances Act 2017 makes important amendments to the POCA, the Terrorism Act and the Anti-terrorism, Crime and Security Act 2001. It extends the powers of law enforcement to seek further information, recover the proceeds of crime and combat the financing of terrorism. It also introduces corporate offences of failing to prevent tax evasion, which may apply to businesses who facilitate this criminal activity. HMRC has published guidance to help businesses put process and procedures in place to prevent persons associated with the business from criminally facilitating tax evasion.
It says (amongst other things):
The [UK] Government considers that prevention procedures put in place by relevant bodies to prevent tax evasion from being committed on their behalf should be informed by the following six principles: Risk assessment; Proportionality of risk-based prevention procedures; Top level commitment; Due diligence; Communication (including training); Monitoring and review Commentary and guidance on what procedures the application of the principles may produce are set out below. These principles are not prescriptive, they are intended to be flexible and outcome focussed, allowing for the huge variety of circumstances that relevant bodies find themselves in. As set out [in more detail below], procedures to prevent facilitation of tax evasion should be proportionate to risk.
See also Who regulates our London Offering?
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Comment