The Criminal Finances Act 2017 and Business Data

20 Oct

The Criminal Finances Act 2017 and Business Data

The Criminal Finances Act 2017 and Business Data

Business data for protection against the Criminal Finances Act is an area which every manager and owner should be aware of and proactive about.

Chris Scanlon is a qualified chartered accountant who in partnership with Thames Valley Business Advisors helps SME’s with business data and analysis. He can take information and maximise its value for strategic planning, tactical delegation and minimising tax exposure, among other integral business needs. He has over 25 years in blue chip industries and 15 years in owner managed businesses. If you read on and feel that you could use his skills and experience, please contact the TVBA.

Business

Protection is vital, don’t take chances

Corporate tax evasion was a serious crime whether it was knowingly or unwittingly perpetrated but with the introduction of the Criminal Finances Act 2017, the gravity of the crime increased.

Two new crimes were created in the Act related to companies avoiding payment of UK tax, no matter where they are located, and firms with UK links who evade tax outside of UK jurisdiction.

Partnerships and limited companies can be found guilty even if the crime was carried out by employees or company representatives without management/owner knowledge. Evidence is required to show that the fraud was carried out in an official capacity for the company.

Protection against this legal eventuality is of paramount importance; comprehensive business data shows the history, current situation and projections for the firm which have relevance to tax exposure. Analysis is a core tool and if an investigation or charges are made then the information could save a lot of stress, legal bills and possibly conviction.

 

Accountability

Experts like Chris believe that it is a matter of accountability.

Don’t hope for the best or assume that you’ll never find yourself suspected of being on the wrong side of the law. Be proactive, take advice and know that tax isn’t a worrying area for your business.

Finances and records must be kept efficiently to ensure that your company isn’t at risk of violating the law and business data is a primary tool in this. The data accrued and assessed can minimise tax liability and safeguard against issues which could arise in the future.

SME’s have all the data at hand that they require to fulfil the task and conform to the law but many don’t use their business data effectively. That’s where professionals like Chris Scanlon prove invaluable.

He, and fellow business data analysts, can help your SME by carrying out a thorough risk assessment and evaluating current risk to tax exposure. Higher levels of due diligence are established to ensure that no violation of regulations, including the Criminal Finances Act 2017, should occur.

When a company has practices in place that record data, this can be used for financial responsibilities as much as for growth and strategizing. Monitoring tax exposure and compliance become easier and peace of mind should ensue.

The saying “knowledge is power” rings true when considering business data which protects against legal ramifications.