23/03/17

Proceeds of Crime Act 2002 (POCA)| Kangs POCA Solicitors

Share

The Criminal Finance Bill 2016/2017 (‘the Bill’), which seeks to amend  POCA,  received its second reading before Parliament this month and it is anticipated that it is likely to come into force in Autumn 2017.

The Bill is split into four parts and, inter alia, looks to:

  1. Reform the Suspicious Activity Reporting regime
  2. Create Disclosure Orders used as part of money laundering investigations
  3. Create new criminal offences for corporate bodies relating to tax evasion
  4. Introduce Unexplained Wealth Orders
  5. Enhance Civil Recovery measures and other enforcement powers.

Timothy Thompson of Kangs Solicitors looks specifically at the introduction, through Part 3 of the Bill, of the proposed new corporate offence of:

‘Failure To Prevent The Facilitation Of Tax Evasion’ | Kangs Fraud Solicitors

The existing law in relation to tax evasion will remain unchanged and, should the Bill become law, it will simply extend the scope of persons who can be prosecuted following tax evasion.

The proposed new law is based on the current corporate offence of ‘Failure of commercial organisations to prevent bribery’, dealt with in Section 7 of the Bribery Act 2010, whereby a body corporate or partnership commits an offence if it fails to prevent an associated person (someone acting for the company and not just an employee) from criminally facilitating the commission of either:

  1. A UK Tax evasion offence; or
  2. A foreign tax evasion offence, which is an equivalent offence under the laws of the foreign jurisdiction.

There is no offence if there were reasonable prevention procedures in place, meaning, procedures designed to prevent associated persons from facilitating tax evasion offences, or in all the circumstances, it was not reasonable to expect any prevention procedures to have been put in place.

HMRC Guidance | Kangs Tax Advisory Lawyers

HMRC has published guidance (HMRC Guidance), to assist corporate bodies with the above issues setting out six principles regarding reasonable prevention procedures:

  1. Risk assessment
  2. Proportionality of risk-based prevention procedures
  3. Top level commitment
  4. Due diligence
  5. Communication (including training)
  6. Monitoring and review

How Can Kangs Solicitors Help You? | Kangs Tax Fraud Solicitors

Here at Kangs we have a dedicated team of lawyers which is regularly instructed on complex Tax Fraud matters.

The team is headed by the firm’s principal, Hamraj Kang who is one of only two lawyers in the country to be awarded ‘star individual’ status by the leading law directory Chambers & Partners.

Should you have the need for any of our tax related experience please do not hesitate to call any one of the following:

Hamraj Kang
hkang@kangssolicitors.co.uk
07976 258 171 | 020 7936 6396 | 0121 449 9888

John Veale
jveale@kangssolicitors.co.uk
0121 449 9888 | 07989 521 210

Tim Thompson
tthompson@kangssolicitors.co.uk
0121 449 9888 | 020 7936 6396 | 07989 521210

News insights, Serious Fraud, Services
A former Labour MP, Jared O’Mara, has received an immediate custodial sentence of four years having been found guilty, following his trial, of six counts of fraud relating to false expenses claims for work that he never carried out in respect of jobs that did not even exist. For further Press details please follow the […]
07/03/23
Criminal Litigation, News insights, Services
Kangs Solicitors has recently successfully defended a client facing an allegation of assault occasioning actual bodily harm arising from an incident forced upon him whilst he was simply conducting his  business, running a restaurant in London’s West End, when confronted with an unsavoury situation. Kangs Solicitors was instructed from the onset attending the interview under caution at Charing […]
06/03/23
Insolvency, News insights, Services
Kangs Solicitors has been instructed to defend claims against our client alleging breaches of Section 212 and 213 of the Insolvency Act 1986. The claims are being brought by the joint liquidators of our client’s company on the basis that our client allegedly knew that he and his company were participating in ‘Missing Trader Intra- Community’ Fraud’ […]
01/03/23

Get in touch

Need legal assistance? Contact our experienced team for prompt and professional support.
Your privacy is important to us and all details you share will be kept confidential.