CIOT examines new corporate offence proposals

Newsletter issue - September 2016

The Chartered Institute of Taxation (CIOT) has recently expressed its concerns that the new corporate offence of failure to prevent the criminal facilitation of tax evasion may lead to a string of prosecutions in relatively small cases where civil penalties can already provide enough punishment.

The Institute set out its concerns in its response to a HMRC consultation on the new corporate criminal offence, which aims to overcome the difficulties in attributing criminal liability to corporations for the criminal acts of those who act on their behalf.

It is still HMRC's intention to keep to their original implementation timetable so that the legislation will be introduced to Parliament in the autumn with Royal Assent expected by early 2017. Given the uncertainty that the EU Referendum decision is causing (and will continue to cause for some time) to business, the CIOT has asked HMRC to consider delaying implementation of this measure.

The three stages of the new offence are:

The Institute's consultation response report can be found here.

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