Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

BriberyEmployment lawEthicsTax

Criminal liability for allowing employees to facilitate tax evasion

by Personnel Today 14 Apr 2016
by Personnel Today 14 Apr 2016 James Gourley/REX/Shutterstock
James Gourley/REX/Shutterstock

Legislation will be introduced to hold firms criminally liable if they fail to stop employees who facilitate tax cheating, the Government has announced.

On 11 April 2016, the Prime Minister announced that new laws will be made this year to hold employers accountable where they have failed to prevent employees from facilitating tax evasion. This news comes just a few days after the “Panama Papers” leak.

David Cameron said: “This Government has done more than any other to take action against corruption in all its forms, but we will go further.

“That is why we will legislate this year to hold companies who fail to stop their employees facilitating tax evasion criminally liable.”

Corporate liability

Employment law manual: Criminal liability for health and safety breaches

Good practice guide on bribery

Anti-bribery statement

The announcement comes ahead of the London anti-corruption summit, which the Government hosts on 12 May 2016.

The summit is “aimed at stepping up global action to expose, punish and drive out corruption in all walks of life”.

The Government launched a consultation on the proposals on 17 April 2016, setting out the details of the new offence, including draft legislation and guidance.

This clarifies that corporations that are found guilty of the facilitation offence will be liable to a fine.

It also confirms that the offence will apply to all “legal persons” including companies and partnerships, and that a firm will be liable if a person associated with it commits an offence while acting for or on behalf of the firm, irrespective of whether he or she is an employee or a contractor.

Bar Huberman, employment law editor at XpertHR said: “Organisations will have a defence if they can show that they had in place such ‘prevention procedures as it was reasonable in all the circumstances’ to have, or that it was not reasonable for them to have any procedures in place.”

The draft guidance, which is intended to help companies understand what procedures to put in place, is based around six “guiding principles”, and states that it is not prescriptive.

Huberman said: “The extent to which organisations should go to put in place procedures will depend on the risks faced by the organisation, bearing in mind the nature, scale and complexity of its activities.

Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

OptOut
This field is for validation purposes and should be left unchanged.

“While the draft guidance explains that the new offence will not require excessive due diligence, it will require ‘more than mere lip-service’. Some organisations may need to step up their procedures to ensure that attempts to avoid tax are spotted early.”

Other existing corporate criminal offences include those of bribery and offences for health and safety breaches.

Personnel Today

Personnel Today articles are written by an expert team of award-winning journalists who have been covering HR and L&D for many years. Some of our content is attributed to "Personnel Today" for a number of reasons, including: when numerous authors are associated with writing or editing a piece; or when the author is unknown (particularly for older articles).

previous post
Flexible working key to commuter work-life balance
next post
How to offer L&D that works in the long term

You may also like

Pay awards in real terms could fall for...

21 May 2025

Minister defends Employment Rights Bill at Acas conference

16 May 2025

CBI chair Soames accuses ministers of not listening...

16 May 2025

EHRC bows to pressure and extends gender consultation

15 May 2025

‘Polygamous working’ is a minefield for HR

14 May 2025

Contract cleaner loses EAT race discrimination appeal

14 May 2025

Construction workers win compensation claim against defunct employer

9 May 2025

Zero-hours workers’ rights to be extended from beyond...

8 May 2025

Employment tribunal backlog up 23% in a year

7 May 2025

Ministers urged to outlaw misuse of NDAs

7 May 2025

  • 2025 Employee Communications Report PROMOTED | HR and leadership...Read more
  • The Majority of Employees Have Their Eyes on Their Next Move PROMOTED | A staggering 65%...Read more
  • Prioritising performance management: Strategies for success (webinar) WEBINAR | In today’s fast-paced...Read more
  • Self-Leadership: The Key to Successful Organisations PROMOTED | Eletive is helping businesses...Read more
  • Retaining Female Talent: Four Ways to Reduce Workplace Drop Out PROMOTED | International Women’s Day...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2025

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2025 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+