Criminal Finances Act 2017

The UK's Criminal Finances Act 2017 (c. 22) received Royal Assent on 27 April 2017.[1] According to its long title, the purpose of the Act is to:

amend the Proceeds of Crime Act 2002; make provision in connection with terrorist property; create corporate offences for cases where a person associated with a body corporate or partnership facilitates the commission by another person of a tax evasion offence; and for connected purposes.

Part 3 of the Act creates the corporate offences of failure of a company or partnership to prevent facilitation of UK tax evasion and failure to prevent facilitation of foreign tax evasion offences. Technically these are two distinct offences, depending on whether the tax which is evaded is UK taxation or foreign taxation. Companies and partnerships are required to take 'reasonable' action to prevent the facilitation of tax evasion and Her Majesty's Revenue and Customs (HMRC), who are responsible for implementation of the legislation, argues that "the procedures that are considered reasonable will change as time passes".[2]

Applications

The Act was invoked, less than two weeks after its provisions on "Unexplained Wealth Orders" came into force on 31 January 2018, to freeze £22 million of assets belonging to an unnamed oligarch.[3]

References

  1. ↑ "Criminal Finances Act 2017 - GOV.UK". www.gov.uk. Retrieved 2018-03-30.
  2. ↑ HMRC, Tackling tax evasion: Government guidance for the corporate offences of failure to prevent the criminal facilitation of tax evasion, Government guidance, 1st September 2017, page 13, accessed 13 November 2017
  3. ↑ Mikhailova, Anna (2018-03-28). "Oligarch's £22m property frozen in crackdown on unexplained wealth, security minister reveals". The Telegraph. ISSN 0307-1235. Retrieved 2018-03-30.


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