Having confirmed that they perceive labour supply chains as high risk, they are looking at multiple opportunities to use the legislation now in place to avoid tax evasion.
HMRC will be focusing in particular on how they can use the Criminal Finances Act 2017 to investigate and, where appropriate, prosecute organisations involved in facilitating tax evasion.
The Criminal Finances Act 2017 makes businesses liable for the actions of their employees and other ‘associated persons’ who intentionally facilitate tax evasion. Businesses will be liable even in cases where senior management were either uninvolved or unaware of the acts. Those found guilty could potentially face unlimited fines and a criminal record.
HMRC are now visiting large businesses, as part of the normal pattern of HMRC risk reviews, to check what prevention procedures are in place to police supply chains.
Large business should be making sure their suppliers have evidence to prove they are carrying out appropriate checks on their supply chains in the UK and overseas. Not providing evidence may result in large businesses having to carry out additional checks by HMRC to avoid being classified as high risk.
With compliance being at the heart of everything we do at Stonebridge Contracting, having a compliant supply chain is imperative to the service that we provide. This includes ensuring that any subcontractors that we supply our clients as part of our service are bonefide subcontractors and that we adhere to the correct legislation whether that is CIS or DRC.
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