Firms must prepare for new UK tax law

Monday 05 December 2016

A Jersey law firm is warning financial service providers in the Island they need to prepare for a new tax law which is expected to come into force in the UK next autumn.

According to Ogier partner Nick Williams, “...the law specifically requires top level management to be integrally engaged, and… to actively ‘foster a culture where actions intended to facilitate tax evasion are considered unacceptable’.”

The law, included in last month’s Criminal Finances Bill covers any business that deals with UK taxpayers or has a connection with the UK, and demands personal engagement in the prevention of tax evasion by top level managers.

It’s expected more sector-specific guidance will be issued before the law comes into force, but Mr Williams is advising firms to start adapting and expanding their compliance procedures.

Mr Williams adds: “this law is going to be a reality and financial services businesses need to have it firmly on their agendas. It requires specific consideration of tax evasion issues in risk assessments and due diligence checks – on this point the guidance is clear, it will not be sufficient to rely on existing procedures and checks, more will need to be done.”