Anti-Facilitation of Tax Evasion Policy Template for the UK
Generate a bespoke document
What is an Anti-Facilitation of Tax Evasion Policy?
An Anti-Facilitation of Tax Evasion Policy outlines how a company prevents its employees and associates from helping others evade taxes. This policy has become especially important since the Criminal Finances Act 2017 introduced corporate criminal liability for failing to prevent tax evasion facilitation by associated persons.
The policy typically requires staff training, due diligence procedures, and clear reporting channels for suspicious activities. It helps organisations comply with HMRC regulations and the Proceeds of Crime Act 2002 whilst protecting themselves from legal risks and substantial penalties. Many UK businesses implement these policies to demonstrate their commitment to preventing tax crimes and maintaining ethical financial practices in accordance with the law.
Sample clauses: standard wording in a UK anti-facilitation of tax evasion policy
4. Prohibited Conduct
4.1 You must not undertake, encourage, assist, procure or in any way facilitate the evasion of tax, whether UK tax or foreign tax, by any other person, and you must not knowingly ignore or fail to report conduct by another person which appears to involve such facilitation.
4.2 It is not a defence that the conduct was intended to benefit [the Company], to secure or retain business, or to obtain an advantage for a customer, supplier or other counterparty, and no employee will suffer detriment for refusing to participate in such conduct even where that refusal results in the loss of business.
4.3 [The Company] will not enter into or continue any arrangement with an associated person (including any agent, consultant, contractor, introducer or intermediary acting for or on behalf of [the Company]) unless risk-based due diligence has been completed and, where the risk assessment requires it, the contract contains an express anti-facilitation covenant and a right of termination for breach.
4.4 Any breach of this clause 4 by an employee will be treated as gross misconduct and may result in summary dismissal, and any breach by an associated person may result in immediate termination of the relevant engagement.
6. Reporting Concerns
6.1 You must report any suspected or actual facilitation of tax evasion, and any request or demand to participate in it, to [the Head of Compliance] as soon as reasonably practicable and in any event within [two] working days of the matter coming to your attention.
6.2 Reports may be made in confidence and, where you wish, anonymously through [the confidential reporting line], and [the Company] will treat a report made in good faith as a protected disclosure for the purposes of the Employment Rights Act 1996, irrespective of whether the suspicion proves to be well founded.
6.3 [The Head of Compliance] shall record each report in the compliance register, determine whether a disclosure is required to HMRC or the National Crime Agency under the Proceeds of Crime Act 2002, and report on all matters raised to the board at least [quarterly].
Illustrative extract showing typical drafting under the law of England and Wales. Documents generated with GenieAI are tailored to your rules, standards and context.
Frequently Asked Questions
When should you use an Anti-Facilitation of Tax Evasion Policy?
Companies need an Anti-Facilitation of Tax Evasion Policy when they operate internationally, handle large financial transactions, or work with multiple business partners. This policy becomes essential for financial institutions, accountancy firms, and businesses with overseas subsidiaries where tax reporting complexity increases risk exposure.
The timing is particularly critical when expanding into new markets, merging with other companies, or facing increased regulatory scrutiny from HMRC. Many organisations implement this policy during annual compliance reviews or after identifying potential tax reporting vulnerabilities in their operations. It's especially valuable for businesses working with partners in jurisdictions known for complex tax structures or higher compliance risks.
What are the different types of Anti-Facilitation of Tax Evasion Policy?
- Basic Compliance Version: Covers essential HMRC requirements and standard reporting procedures, ideal for small to medium enterprises with straightforward tax structures
- International Operations Version: Includes cross-border transaction monitoring, enhanced due diligence requirements, and compliance with the Common Reporting Standard (CRS)
- Financial Services Edition: Features specialised controls for banking, investment firms, and financial advisors, with detailed transaction screening protocols and FCA compliance measures
- Corporate Group Policy: Designed for complex corporate structures with multiple subsidiaries, incorporating group-wide reporting mechanisms and consolidated tax compliance
- High-Risk Industry Version: Contains additional safeguards for sectors such as real estate, professional services, or cryptocurrency trading, with enhanced monitoring requirements under Money Laundering Regulations 2017
Who should typically use an Anti-Facilitation of Tax Evasion Policy?
- Compliance Officers: Lead the development and implementation of the Anti-Facilitation of Tax Evasion Policy, monitoring adherence and updating procedures
- Board Members: Review and approve the policy, ensuring it aligns with corporate governance standards and legal obligations
- Legal Counsel: Draft and validate policy language, ensuring alignment with HMRC guidance, the Criminal Finances Act 2017, and Proceeds of Crime Act requirements
- Department Managers: Implement policy procedures within their teams and report potential violations
- Internal Auditors: Assess policy effectiveness and compliance during regular reviews
- External Auditors: Review policy effectiveness and compliance during annual statutory audits
- Employees: Follow policy guidelines in daily operations and report suspicious activities through proper channels
How do you write an Anti-Facilitation of Tax Evasion Policy?
- Business Structure Review: Map your organisation's tax reporting processes, international operations, and high-risk activities
- Risk Assessment: Document potential tax evasion vulnerabilities in your operations and business relationships in accordance with Criminal Finances Act guidance
- Compliance Requirements: Gather relevant HMRC regulations, Criminal Finances Act 2017 guidelines, Proceeds of Crime Act requirements, and industry-specific standards
- Internal Controls: List existing monitoring procedures and identify gaps needing coverage
- Training Needs: Determine which staff members need policy training and at what level, including senior management and customer-facing roles
- Reporting Mechanisms: Design clear channels for reporting suspicious activities, including anonymous reporting options
- Review Process: Establish how often the policy needs updating and who approves changes, with reference to HMRC guidance updates
What should be included in an Anti-Facilitation of Tax Evasion Policy?
- Policy Purpose: Clear statement of commitment to preventing tax evasion facilitation and compliance with Criminal Finances Act 2017
- Scope Definition: Specifies covered entities, employees, contractors, and business relationships including associated persons
- Risk Assessment Framework: Methods for identifying and evaluating tax evasion risks in line with HMRC best practice
- Due Diligence Procedures: Steps for vetting business partners, clients, and transactions to mitigate facilitation risks
- Reporting Mechanisms: Clear procedures for reporting suspicious activities, including internal and external reporting to relevant authorities
- Training Requirements: Mandatory staff education and awareness programmes tailored to role-specific responsibilities
- Compliance Monitoring: Internal controls, audit procedures, and periodic compliance assessments
- Enforcement Measures: Consequences for policy violations and disciplinary actions proportionate to breaches
What's the difference between an Anti-Facilitation of Tax Evasion Policy and a Compliance and Ethics Policy?
An Anti-Facilitation of Tax Evasion Policy differs significantly from a Compliance and Ethics Policy in several key ways, though they may seem similar at first glance. Whilst both address organisational conduct, their focus and scope vary considerably.
- Primary Focus: Tax evasion policies specifically target preventing assistance in tax crimes, whilst compliance and ethics policies cover broader ethical business conduct
- Regulatory Framework: Tax evasion policies align with Criminal Finances Act 2017, HMRC requirements, and Proceeds of Crime Act 2002, whereas compliance and ethics policies address multiple regulatory standards across different sectors
- Risk Management: Tax evasion policies concentrate on financial transaction risks and tax reporting, whilst ethics policies cover various organisational risks including conduct and integrity
- Implementation Scope: Tax evasion policies typically affect finance-related roles and those with client contact most heavily, whilst ethics policies apply equally across all departments and levels
Why Trust GenieAI?
- 244,337 businesses have trusted GenieAI to draft 365,360 legal documents (and growing).
- Across every document GenieAI reviews, the median document carries 4 high-priority risks.
- Vague or ambiguous wording is the single most common problem, at 14.6% of all issues raised.
- GenieAI reviews a full contract, clause by clause, in typically under two minutes.
Source: GenieAI internal data Updated 6 hours ago
About the Anti-Facilitation of Tax Evasion Policy
- Business Structure Review: Map your organisation's tax reporting processes, international operations, and high-risk activities
- Risk Assessment: Document potential tax evasion vulnerabilities in your operations and business relationships in accordance with Criminal Finances Act guidance
- Compliance Requirements: Gather relevant HMRC regulations, Criminal Finances Act 2017 guidelines, Proceeds of Crime Act requirements, and industry-specific standards
- Internal Controls: List existing monitoring procedures and identify gaps needing coverage
- Training Needs: Determine which staff members need policy training and at what level, including senior management and customer-facing roles
- Reporting Mechanisms: Design clear channels for reporting suspicious activities, including anonymous reporting options
- Review Process: Establish how often the policy needs updating and who approves changes, with reference to HMRC guidance updates
Explore 208,390+ legal templates
Explore 208,390+ legal templates
Genie's Security Promise
Genie is the safest place to draft. Here's how we prioritise your privacy and security.
Your data is private:
We do not train on your data; Genie's AI improves independently
All data stored on Genie is private to your organisation
Your documents are protected:
Your documents are protected by ultra-secure 256-bit encryption
We are ISO27001 certified, so your data is secure
Organizational security:
You retain IP ownership of your documents and their information
You have full control over your data and who gets to see it