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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."
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