New rules on employer responsibility: Andrew Constable comments
From September 2017, businesses will become criminally liable for failing to prevent their employees facilitating tax evasion whilst on the job. Employers will only have a defence if they have “reasonable prevention procedures” in place.
Tax partner Andrew Constable comments: “Large firms will find this change difficult enough, but it is clear that smaller firms have not understood all that is at stake. Failure to comply with the new rules could involve massive fines. For many businesses, putting the necessary procedures in place will involve a total review of employee training and monitoring. Businesses must get a grip on their legal responsibilities before these punishments become a reality.”