Our anti-criminal finance policy

1. Introduction

The Criminal Finances Act 2017 came into force on 30 September 2017. As of that date, corporate bodies and partnerships are criminally liable if they fail to prevent tax evasion by either a member of their staff or an external agent, even where the business was not involved in the act or was unaware of it.

The Act has similarities with the Bribery Act 2010. VisitScotland is committed to ensuring that it puts in place processes and systems that minimise the risk of tax evasion facilitation. VisitScotland does not condone and has a zero-tolerance approach to the facilitation of tax evasion. 

3. Who does this policy apply to?

This policy applies to all persons working for us, or on our behalf, in any capacity including

• all employees
• agency and seconded workers
• volunteers and interns
• agents and contractors
• external consultants and third-party representatives
• business partners and sponsors
• or any other person associated with us, wherever located

4. Responsibility for this policy

The Board has overall responsibility for ensuring this policy complies with our legal and ethical obligations, and that all those under our control comply with it.

The Head of Financial Services has primary and day-to-day responsibility for implementing this policy, monitoring its use and effectiveness, dealing with any queries about it, and reviewing internal control systems and procedures to ensure they are effective in preventing the facilitation of tax evasion.

Directors, Chief Officers and Heads of Department are responsible for ensuring those reporting to them are of this policy and understand their obligations under it.

While only a legal entity can commit an offence under the various Acts, all employees have a responsibility to ensure that we can recognise suspicious financial activity and act accordingly.

5. Definitions

For the purposes of this policy:

1. tax evasion means the offence of cheating the public revenue or fraudulently evading UK tax, and is a criminal offence. The offence requires an element of fraud, which means there must be deliberate action, or omission with dishonest intent
2. foreign tax evasion means evading tax in a foreign country, provided that conduct is an offence in that country and would be a criminal offence if committed in the UK. As with tax evasion, the element of fraud means there must be deliberate action, or omission with dishonest intent
3. tax evasion facilitation means being knowingly involved in (or taking steps with a view to) the fraudulent evasion of tax (whether UK tax or tax in a foreign country) by another person, or aiding, abetting, counselling or procuring the commission of that offence. Tax evasion facilitation is a criminal offence, where it is done deliberately and dishonestly
4. associated person means an employee of VisitScotland, one of our agents, or any such person who performs services for or on our behalf
5. third party means any individual or organisation an employee comes into contact with during their work for us. It includes actual and potential clients, customers, suppliers, distributors, business contacts, agents, advisers, and government and public bodies, including their advisers, representatives and officials, politicians and political parties

Under the CFA, a separate criminal offence is automatically committed by VisitScotland when the tax evasion is facilitated by a person acting in the capacity of VisitScotland.

For the offence to be committed, the associated person must deliberately and dishonestly take action to facilitate the tax evasion. If the associated person accidentally, ignorantly, or negligently facilitates the tax evasion, then the corporate offence will not have been committed.

The organisation does not have to have deliberately or dishonestly facilitated the tax evasion itself; the fact that the associated person has done so creates the liability for VisitScotland.

Tax evasion is not the same as tax avoidance or tax planning.

• Tax evasion involves deliberate and dishonest conduct
• Tax avoidance is not illegal and involves taking steps, within the law, to minimise tax payable (or maximise tax reliefs)

In this policy, all references to tax also includes national insurance contributions (and their equivalents outside the UK).

7. What employees must not do

It is not acceptable for an employee (or someone on their behalf) to:

• engage in any form of facilitating tax evasion or foreign tax evasion
• aid, abet, counsel or procure the commission of a tax evasion offence or foreign tax evasion offence by another person
• fail to promptly report any request or demand from any third party to facilitate the fraudulent evasion of tax (whether UK tax or tax in a foreign country), or any suspected fraudulent evasion of tax whether UK tax or tax in a foreign country) by another person, in accordance with this policy
• engage in any other activity that might lead to a breach of this policy
• threaten or retaliate against another individual who has refused to commit a tax evasion offence or a foreign tax evasion offence or who has raised concerns under this policy 

9. Raising a concern

Employees are encouraged to raise concerns about any issue or suspicion of tax evasion or foreign tax evasion at the earliest possible stage.

If an employee becomes aware of any fraudulent evasion of tax (whether UK tax or tax in foreign country) by:

• another person in the course of their work
• they are asked to assist another person in their fraudulent evasion of tax whether directly or indirectly)
• if an employee believes or suspect that any fraudulent evasion of tax has occurred or may occur, whether in respect to UK tax or tax in a foreign country

they should raise it with their manager or those listed in the employee responsibilities section of this policy as soon as possible.

If an employee is unsure about whether a particular act constitutes tax evasion or foreign tax evasion, they should raise it with their manager or those listed in the employee responsibilities section of this policy as soon as possible.

Jump to the employee responsibilities section of this policy.

The corporate offence is only committed where an employee deliberately and dishonestly takes action to facilitate tax evasion or foreign tax evasion. If they do not take any such action, then the offence threshold will not have been met.  

However, a deliberate failure to report suspected tax evasion or foreign tax evasion, or “turning a blind eye” to suspicious activity could amount to criminal facilitation of tax evasion.

11. Breaches of this policy

Any employee who breaches this policy will face disciplinary action, which could result in dismissal for misconduct or gross misconduct.  We may terminate our relationship with other individuals and organisations working on our behalf if they breach this policy.