Six steps to fend off ‘failure to prevent’ tax evasion charges
By Will Grahame-Clarke, 18 May 18
A law firm outlines how financial advice firms can protect themselves from the criminal offence of failing to prevent tax evasion.
Principle 4 – Due diligence
The guidance recognises that substantial due diligence is already undertaken in high-risk sectors but notes that this will not necessarily be correctly targeted: the risk assessment will determine what is required.
Principle 5 – Communication (including training)
The focus is on effective internal communication including whistleblowing channels.
What is required from training is an understanding of the scope of the offences and the associated risks and of how to seek advice and raise concerns rather than a detailed understanding of tax rules.
