MA2017-Final
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STURGEON<br />
VENTURES<br />
SEONAID<br />
MACKENZIE<br />
1. Risk Assessment<br />
This is the most important guiding principle. The<br />
business will need to assess (now) the nature and<br />
extent of its exposure to the risk of criminal facilitation<br />
of tax evasion in relation to its stakeholders.<br />
2. Proportionality of Risk-based<br />
Prevention Procedures<br />
Actions, if any, required from the risk assessment<br />
exercise will need to be balanced depending on the<br />
size and complexity of the business. HMRC is clear in<br />
its guidance that burdensome procedures with a view<br />
to eliminating all risks are not required.<br />
3.Top Level Commitment<br />
Messaging from the top should be timely and clear<br />
which should be woven into the risk management<br />
fabric of the business. Top management should lead<br />
from the front in making sure that everyone that works<br />
in and with the business is made aware of the risks<br />
and the consequences of non-compliance.<br />
4.Due Diligence<br />
Business leads should ensure that there are<br />
procedures in place to conduct appropriate diligence<br />
on persons who perform services for and on behalf<br />
of the organisation to mitigate potential risks.<br />
5.Communication (including training)<br />
Businesses should communicate the policies in<br />
relation to the facilitation of tax evasion and ensure that<br />
these are understood throughout the organisation. This<br />
should be done through regular training of the staff and<br />
the key stakeholders of the business.<br />
6.Monitoring and Review<br />
Regular monitoring and review by top management<br />
and business leads should be built into the risk<br />
management framework. The results of the review<br />
should be documented and variations to and from the<br />
policies and procedures should be addressed.<br />
The very first step will be for businesses to understand<br />
the law and how this impacts their business. If action is<br />
required, it needs to be immediate (given the rules are<br />
likely to be in force later in the year) and policies and<br />
procedures de-risking the business from a potential<br />
prosecution will need to be developed and<br />
implemented at the earliest opportunity.<br />
Senior members of the business would need to take<br />
ownership of the project and assess the risks and<br />
identify the existing gaps in policies and procedures<br />
currently in place. Policies around regular engagement<br />
with staff and stakeholders will need to be put in place.<br />
Prevention...........<br />
It is critical that all actions taken and the results are<br />
properly documented such that if ever the business is<br />
to be challenged on grounds of facilitating tax evasion<br />
under these rules they are in a position to demonstrate<br />
the work done in this area to mitigate their risks by<br />
having the documents to hand.<br />
However, if the business is unsuccessful in<br />
demonstrating to the satisfaction of HMRC (or<br />
ultimately the courts) that they have taken all steps<br />
to limit the facilitation of a tax evasion offence and an<br />
investigation were to start that will be a different ball<br />
game all-together.<br />
Please note this is only guidance not advice and you<br />
should seek advice on your own process and<br />
procedures from your Accountant and Legal Counsel<br />
Sturgeon Ventures LLP<br />
Linstead House<br />
2nd Floor<br />
9 Disraeli Road<br />
London SW15 2DR<br />
www.sturgeonventures.com<br />
hello@sturgeonventures.com<br />
Implementation<br />
Implementation may not necessarily be a<br />
time-consuming exercise for smaller organisations.