An introduction to the Criminal Finances Act 2017 and how it affects the UK sports industry
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.
Continue reading this article...
Already a member? Sign in
Get access to all of the expert analysis and commentary at LawInSport including articles, webinars, conference videos and podcast transcripts. Find out more here.
- Tags: Anti-Corruption | Bribery Act 2010 | Criminal Finances Act 2017 | HMRC | UK | United Kingdom (UK)
- How the UK taxes overseas athletes and what the consequences are for UK sport
- 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
About the Author
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.
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".