An introduction to the Criminal Finances Act 2017 and how it affects the UK sports industryMichelle Sloane Adam Craggs
All of us working in the sports industry should be aware of the new Criminal Finances Act 20171 (the Act), which provides two new strict liability offences for failing to prevent the facilitation of tax evasion - a particularly topical subject given the recent Paradise Papers revelations.
The changes are designed to overcome the difficulty often encountered by prosecuting authorities in attributing criminal liability to companies for the criminal acts of employees, agents, or those that provide services for, or on their behalf.
The consequences are extreme, with companies potentially facing an unlimited financial penalty and/or ancillary orders such as confiscation orders or serious crime prevention orders. Non-compliance will result in a criminal investigation by HMRC, which brings with it the risk of a dawn raid.
This article briefly summarises the new offences under the Act, specifically with regard to the sports industry, which remains firmly in the sights of the tax man. It goes on to describe the practical steps that should be taken now in order to minimise the risk of a criminal conviction.
...to continue reading register here for free
LawInSport is an independent publisher used by sports lawyers, sports business executives and administrators, athletes and support personnel, academics and students to stay informed of the latest legal issues and developments from the world of sport. It is our mission to improve the accountability, transparency and standard of the administration and governance of sport and the understanding of the law.
Thank you for considering becoming a member of LawInSport, supporting independent media and the promotion well researched, reference and accessible legal information that contributes to greater transparency and accountability in the sport and legal sectors.
This work was written for and first published on LawInSport.com (unless otherwise stated) and the copyright is owned by LawInSport Ltd. Permission to make digital or hard copies of this work (or part, or abstracts, of it) for personal use provided copies are not made or distributed for profit or commercial advantage, and provided that all copies bear this notice and full citation on the first page (which should include the URL, company name (LawInSport), article title, author name, date of the publication and date of use) of any copies made. Copyright for components of this work owned by parties other than LawInSport must be honoured.
- Tags: Anti-Corruption | Bribery Act 2010 | Criminal Finances Act 2017 | HMRC | UK | United Kingdom (UK)
- Tackling match-fixing: a look at the UK’s new Anti-Corruption Plan
- No gambling permitted: how sports governing bodies regulate betting by athletes and "Connected Persons"
- Why sport needs a unified approach to sanctions for corruption offences
- How the UK taxes overseas athletes and what the consequences are for UK sport
About the Author
Michelle specialises in contentious tax. Michelle has particular expertise in advising sports clients in relation to indirect tax enquiries and HMRC criminal investigations and prosecutions covering all tax types, including managing HMRC "dawn raids".
Adam leads RPC's market-leading tax disputes team and has over 25 years' experience in this area. Adam has particular expertise in advising sports clients on matters involving image rights, agents' fees, residence/domicile and Employee Benefit Trusts (EBT) arrangements. He acts on behalf of a range of high profile clients including international Premier League football players, their agents and advisors, and clubs.