Employment tax compliance is a significant risk area for the new corporate criminal offences of failing to prevent the facilitation of tax evasion. An employee who deliberately turns a blind eye to a contractor misrepresenting their position could be facilitating tax evasion, exposing their employer to liability. Reasonable prevention procedures will give a business a defence. The use of agencies is a particular concern and businesses should insist on agencies taking their own steps to prevent the facilitation of evasion. It would send a powerful signal if a business is prosecuted for employment tax compliance failures and then cannot bid for government contracts.
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