Thanks to legislation that is due to come into force in the United Kingdom this September, corporations face the risk of an unlimited fine and a criminal conviction if any employee or “associated person” working on the company’s behalf facilitates tax evasion.
Under the terms of the Criminal Finances Bill that received Royal Assent at the end of April, lawyers warn that “facilitation” is “widely defined,” and that the compliance challenge is not limited to the U.K. Global institutions with a U.K. presence could be subject to U.K. criminal proceedings if an employee anywhere in the world—including agents or sub-contractors acting on the organisation’s behalf—is found guilty of facilitating tax evasion.
