In the eyes of HMRC, could you be a tax shelter?
Almost 2 years has passed since the all-embracing Criminal Finance Act became law. It imposes massive accountability on many businesses – including TEAM Members. The Act commands you to be able to prove the presence and implementation (or, conversely, the irrelevance) of ‘reasonable procedures’ capable of preventing a UK or foreign tax evasion offence which arose, unwittingly or otherwise, under your watch. Without such procedures, HMRC will presume your business guilty of that offence. It’s that clear and that serious.
If you do not yet have prevention protocols in place, what should you be doing about it?
Thankfully, HMRC prescribes a ‘principle-based’ approach to help you define the procedures appropriate for your business to follow. It cites 6 guiding actions. listed here in chronological order:
- Carry out a risk assessment
- Make sure your procedures are proportionate to your business
- Implement due diligence protocols
- Secure a ‘buy-in’ from your management team
- Communicate your protocols to all stakeholders in your business
- Regularly review and evolve your ‘reasonable’ protocols
Ongoing legislation has placed tax compliance firmly on the radars of candidates and clients. In addition to following the law, you should be embracing it in your dealings with those two key stakeholders in your business.
Want to know more? As a TEAM Member wanting to follow a compliance pathway, you have free access to the TEAM INTERNATIONAL HELPLINE on 020 7477 2660 for a complimentary consultation on due diligence and how it can open business opportunities for you.