Anti-Facilitation of Tax Evasion Policy Template for South Africa

An Anti-Facilitation of Tax Evasion Policy helps organizations prevent their employees and associates from enabling tax evasion by others. It outlines clear procedures and controls that companies must follow to comply with South African tax laws, including the Tax Administration Act and Prevention of Organised Crime Act.

The policy requires staff training, due diligence checks on business partners, and reporting mechanisms for suspicious activities. It protects companies from criminal liability while demonstrating their commitment to ethical business practices. SARS expects businesses, especially in finance and professional services, to maintain these policies as part of their tax risk management framework.

Implement an Anti-Facilitation of Tax Evasion Policy when your organization works with multiple partners, contractors, or intermediaries who handle financial transactions. This becomes especially crucial for businesses in banking, accounting, legal services, or real estate where complex financial arrangements are common.

The policy proves essential when expanding operations, onboarding new business partners, or facing SARS compliance reviews. It's particularly valuable for companies operating across borders or handling large transaction volumes. Having this policy in place protects your organization from legal risks and demonstrates proactive compliance with South African tax regulations.

• Basic Policy: Essential version focusing on core prevention measures, staff training requirements, and reporting procedures - ideal for small to medium enterprises
• Comprehensive Corporate Policy: Detailed version with extensive due diligence procedures, risk assessment frameworks, and international transaction protocols
• Industry-Specific Policy: Tailored versions for high-risk sectors like financial services, with specialized controls and monitoring requirements
• Group-Wide Policy: Designed for corporate groups, covering parent companies and subsidiaries with consolidated reporting structures
• Partner-Focused Policy: Emphasizes third-party risk management, particularly for businesses heavily reliant on external partnerships

• Corporate Leadership: Board members and executives who approve and oversee the policy implementation across their organizations
• Compliance Officers: Responsible for drafting, updating, and monitoring adherence to the policy's requirements
• Financial Teams: Handle day-to-day implementation, including transaction monitoring and risk assessments
• HR Departments: Manage staff training programs and ensure employee awareness of policy requirements
• External Partners: Business associates, contractors, and suppliers who must comply with the policy's provisions
• Legal Advisors: Review and update the policy to ensure alignment with SARS requirements and tax laws

• Risk Assessment: Map your organization's tax-related activities and identify potential evasion risks in your business operations
• Current Controls: Document existing financial controls, reporting procedures, and compliance measures
• Staff Structure: List key personnel responsible for financial oversight and their roles in policy implementation
• Partner Details: Compile information about business partners, contractors, and their financial interactions
• Training Needs: Assess staff knowledge gaps and required training programs
• Reporting Systems: Review existing whistleblowing and incident reporting mechanisms
• Documentation: Gather relevant financial policies, SARS guidelines, and industry standards

• Policy Scope: Clear definition of covered activities, departments, and personnel affected by the policy
• Risk Assessment Framework: Detailed procedures for identifying and evaluating tax evasion risks
• Due Diligence Procedures: Specific steps for vetting business partners and transactions
• Reporting Mechanisms: Outlined procedures for reporting suspicious activities and protection for whistleblowers
• Training Requirements: Mandatory staff training programs and frequency of updates
• Compliance Monitoring: Methods for tracking and reviewing policy effectiveness
• Enforcement Measures: Consequences for non-compliance and disciplinary procedures
• Review Schedule: Timeframes for policy updates and compliance assessments

An Anti-Facilitation of Tax Evasion Policy differs significantly from a Compliance and Ethics Policy in several key ways, though both support corporate governance. Let's explore the main differences:

• Scope and Focus: While a Compliance and Ethics Policy covers broad ethical conduct across all business activities, an Anti-Facilitation of Tax Evasion Policy specifically targets preventing assistance in tax evasion schemes
• Legal Framework: Tax evasion policies directly align with SARS requirements and tax legislation, whereas Compliance and Ethics Policies address multiple regulatory frameworks
• Risk Assessment: Tax evasion policies include specific financial transaction monitoring and tax risk evaluations, while ethics policies cover general conduct risks
• Training Requirements: Tax evasion policies mandate specialized training on tax compliance and red flags, compared to general ethics training in compliance policies