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Clifford Chance

Clifford Chance
Briefings

Briefings

Failure to prevent the facilitation of tax evasion: The new extra-territorial UK criminal offence and its impact on private equity

14 July 2017

The UK has enacted a new corporate criminal offence of failing to prevent the facilitation of tax evasion by employees and other associated persons. It is highly extra-territorial, applies to businesses worldwide, and can apply to the evasion of non-UK taxes as well as UK taxes.

This briefing looks at the implications for typical private equity structures, and the practical steps fund managers can be taking to avoid the actions of one rogue employee creating criminal liability for a portfolio company, a fund manager, or even a fund itself.

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