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Anti-Tax Evasion Policy

The Criminal Finances Act 2017

4.1 Under the Criminal Finances Act 2017, a separate criminal offence is automatically committed by a corporate entity where the tax evasion is facilitated by a person acting in the capacity of an "associated person" to that body. For the offence to be made out, the associated person must deliberately and dishonestly take action to facilitate the tax evasion by the taxpayer. If the associated person accidentally, ignorantly, or negligently facilitates the tax evasion, then the corporate offence will not have been committed. The Council does not have to have deliberately or dishonestly facilitated the tax evasion itself; the fact that the associated person has done so creates the liability for the Council.

Specifically, staff, agents and associates must not knowingly do anything that helps someone else evade tax.

4.2 It is a defence to the corporate criminal offence of facilitating tax evasion if the Council can prove that it has in place such prevention procedures as it is reasonable to expect in the circumstances. Government guidance ("Tackling tax evasion: Government guidance for the corporate offences of failure to prevent the criminal facilitation of tax evasion") suggests an appropriate set of prevention measures which gives due recognition to the following:

  • risk assessment;
  • the proportionality of risk-based prevention procedures;
  • top level commitment;
  • due diligence;
  • communication (including training);
  • monitoring and review.

4.3 The Council must ensure a policy on prevention is brought to the attention of all staff. This policy will therefore be published on the Council's website and proactively communicated to staff.

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