Criminal Finances Act – Key facts you need to know

The Criminal Finances act came into force on 30th September 2017 and has changed the rules of liability in cases of fraud. It is important that you know the facts so that you can ensure your business is compliant.

What’s changed?

The new rules state that companies and partnerships can now be held accountable if anyone who works for, or on behalf of them, knowingly aids or abets tax evasion in their work for the business.

What are the consequences?

The business itself can be fined if there is found to be any evidence of tax evasion on the part of one of their employees, and these fines are unlimited.

What can I do to prevent this from happening to my company?

There are a number of defences for businesses to ensure that they are not held liable. For example all companies and partnerships should carry out a risk assessment and provide training to employees. The business should consider the controls that it has in place to ensure that they are adequate.

What next?

James Cowper Kreston are committed to making sure that our clients are well informed; we will gladly discuss with you where non-compliance could potentially arise. As mentioned all businesses need to do something – even if this is just a risk assessment, review of internal controls and training. We have a section on our website which discusses the new rules in greater detail; you can read it here.