The Criminal Finances Act was introduced in 2017 as an amendment to the earlier Proceeds of Crime act in order to update the rules which govern the flow of money or other assets as they relate to criminal activity.
It is the responsibility of companies such as ours, in particular due to the comparatively large sums involved in the transfer of funds and assets within the motor trade, to be particularly vigilant in the way we conduct our business, to mitigate the risk and actively avoid becoming unwittingly involved in money laundering, tax evasion and other areas of financial misconduct.
Following is our policy setting out how we will discharge our responsibilities in respect of the act. This policy is subject to change from time to time as becomes necessary.
Anti-Tax Evasion Statement
Melling Commercial Limited (Trading as Westwood Motor Group) and its subsidiaries (referred to as the “Company”) will not tolerate any form of tax evasion.
Employees and Agents of the Company must not undertake any transactions which:
(a) directly or indirectly cause the Company to commit a tax evasion offence; or
(b) facilitate a tax evasion offence by a third party who is not an agent or associate of the Company.
We are committed to acting in a professional, fair manner and with the utmost integrity in all our business dealings. This includes (but not limited to) implementing and enforcing effective systems to avoid the facilitation of tax evasion.
Who Must Ensure This Policy is Adhered To?
This policy applies to all persons employed by or working for the Company or for any subsidiary company, or on our behalf in any capacity. This includes employees at all levels, Directors, Officers, Managers and Associates (as is detailed below), including but not limited to agency workers, seconded workers, volunteers, apprentices, contractors, external consultants, third-party representatives and/or business partners, sponsors or any other person associated with us.
Who Is Ultimately Responsible For This Policy?
The Directors of the Company have the ultimate responsibility for ensuring that this policy complies with our legal obligations. They also bear the responsibility for ensuring that our employees, agents and associates comply with the same. This policy may be varied or withdrawn at any time, at the Company’s absolute discretion. Employees in Management and/or Leadership positions are responsible for ensuring those reporting to them understand and comply with this policy.
How Is Tax Evasion To Be Defined/Identified?
Definitions For the purposes of this policy:
Associates includes company contractors or an agent of the Company (other than a contractor) who is acting in the capacity of an agent, or any person who performs services for and on behalf of the Company who is acting in the capacity of a person or business performing such services.
Tax Evasion means an 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.
Foreign Tax Evasion means evading tax in a foreign country, provided that the 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.
Tax Evasion Facilitation means being knowingly concerned 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.
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).
Tax means all forms of UK taxation, including but not limited to corporation tax, income tax, value added tax, stamp duty, stamp duty land tax, national insurance contributions (and their equivalents in any non-UK jurisdiction) and includes duty and any other form of taxation (however described).
COMPANY RESPONSIBILITIES
The Company has established procedures governing certain transactions with third parties designed to prevent specific areas of possible tax evasion by a third party.
The Company is responsible for helping employees to understand tax evasion and the actions to take to prevent tax evasion.
What Employees, Team Members, Agents & Associates Must Avoid Doing
Employees and Associates must at all times adhere to the Westwood Motor Group anti-tax evasion value statement and must ensure that they read, understand and comply with this policy.
It is not acceptable for team members and Associates to:
a) Engage in any form of facilitating Tax Evasion whether domestic or foreign
b) Act in any way which aids, directly or indirectly, the commission of a Tax Evasion offence by another person;
c) Fail to report the commission of an offence by another person or report the request to commit/aid the commission of such an offence; or
d) Knowingly engage in any other activity that might lead, either directly, or indirectly, to a breach of this policy; or
e) Subject to any form of threat, abuse or other deterrent; a person, or persons who have either refused to commit an offence under the policy or have either reported or intend to report a breach of the policy.
f) An offence consisting of being knowingly involved in the fraudulent evasion of tax.
Remaining Vigilant
The UK has one of the most complicated tax systems in the world, so it is virtually impossible to compile an exhaustive list of Tax Evasion opportunities and unreasonable to expect those not well versed in tax law to be fully conversant with them. Generally speaking, the best defence against Tax Evasion and facilitation of Tax Evasion remains the vigilance of our employees, agents and associates combined with the adoption of a common-sense approach, used in conjunction with our clear whistleblowing procedure. In applying common sense, team members must be aware of the following:
- Is there anything unusual about the manner in which an Associate of the Company is conducting their relationship with the Company or the third party (usually a customer)?
- Is there anything unusual about the customer’s or Associate’s conduct or behaviour in your dealings with them?
- Are there unusual payment methods?
Unusual payment methods and unusual conduct of third parties with Company Associates can be indicative that a transaction may not be as it seems.
Procedure For Raising Legitimate Concerns
Our employees have a responsibility to take reasonable action to prevent harm to Westwood Motor Group and we hold our employees accountable for their actions and omissions. Any actions that breach the Criminal Finances Act and the tax laws of wherever we operate brings harm to Westwood Motor Group and will not be tolerated.
You are responsible for properly following Westwood Motor Group’s policies and procedures. These should generally ensure that all taxes are properly paid. If you are ever asked by anyone either inside or outside our company to go outside our standard procedures, this should be reported without delay, as someone may be attempting to evade tax.
Is it ever in the Company’s Interest To Bend The Rules On Tax For Commercial Reasons?
For the avoidance of doubt, this should never happen. If there is any suspicion of any intention to evade tax, the Company can be investigated and if criminally prosecuted, subject to a large fine and be publicly named and shamed. As well as being immoral, tax evasion could cause significant reputational damage, leading to additional loss of custom and therefore revenue. Losses which far exceed any potential financial benefit which may be gained by operating in an illegal manner.
