1. Purpose and Scope
This policy is intended to set out the University’s approach to monitoring, identifying and ultimately avoiding incidents and/or risks of criminal tax evasion.
This policy applies to all members of University staff, members of the University Council and Council Committees and all students.
In addition, this policy also applies to other associated persons, which are defined by the Act as the University's officers, employees, workers, agents, sub-contractors or other people or organisations that provide services for or on the University's behalf.
To the fullest extent permissible by law, this policy shall apply in all jurisdictions in which the University and its subsidiaries operate. Tax evasion is a criminal offence in most countries and failure to comply with this policy may expose the University, its employees and representatives to the risk of prosecution, as well as to reputational risk and loss of trust.
Countering tax evasion and reporting suspected cases in line with this policy is the responsibility of all those outlined above.
2. Definitions
Associated Person
An Associated Person is any person that provides services for or on behalf of a corporate entity or partnership; and includes employees acting in the capacity of an employee, agents acting in the capacity of an agent, and any other person who performs services for or on behalf of the corporate entity who is acting in the capacity of a person performing such services.
For the purpose of this Policy, “Associated Persons” includes the University’s officers, employees, workers, agents, sub-contractors, and other people or organisations that provide services for or on the University’s behalf.
Employee
An employee is an individual who has entered into and works under a contract of employment with the University of Bath.
Tax Evasion
Tax evasion is 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. Tax evasion is not the same as tax avoidance or tax planning. Tax evasion involves deliberate and dishonest conduct, whilst tax avoidance and tax planning are not illegal and involve taking steps, within the law, to minimise tax payable or maximise tax reliefs.
Failure to Prevent Facilitation of Tax Evasion or Foreign Tax Evasion (the “Corporate Offence”)
Under the Criminal Finances Act 2017 corporate entities and partnerships will be held criminally liable if tax evasion or foreign tax evasion is facilitated by a person acting in the capacity of an “Associated Person” to that body. The offence requires that the Associated Person deliberately and dishonestly takes action to facilitate the tax evasion, but the company does not have to act deliberately and dishonestly; the fact that the associated person has done so creates the liability for the company.
Tax Evasion Facilitation
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.
Foreign Tax Evasion
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. Roles and Responsibilities
In accordance with the Office for Students’ Terms and Conditions of funding for higher education institutions (March 2018), University Council has responsibility for ensuring that the University “has a robust and comprehensive system of risk management, control and corporate governance. This should include the prevention and detection of corruption, fraud, bribery and irregularities.” Council has overall responsibility for approving the Anti Criminal Finances Policy and for ensuring that it complies with the University’s legal and ethical obligations. The University Executive Board exercises responsibility for the implementation, monitoring and review of the Anti-Criminal Finances Policy, for the periodic review of the institutional risk assessment, and for providing such assurance as Council requires to discharge its responsibilities.
The University Executive Board established the Compliance Board which is responsible for preparing an annual report to the University Executive Board on the implementation and monitoring of the Anti-Criminal Finances Policy and its annual review of the associated risk assessment. The board lead the review of the Anti-Criminal Finances Policy on a 3-year cycle, unless legislative changes prompt an interim review.
4. Policy Statement
The University of Bath is committed to ethical standards of business conduct and adopts a zero-tolerance approach to tax evasion and corruption in all jurisdictions. The University will uphold relevant laws for countering tax evasion and corruption, particularly the Criminal Finances Act 2017.
The University and its subsidiary companies are committed to ensuring that its employees, agents and other associated persons acting on the University’s behalf are not facilitating tax evasion by another party.
Breach of this policy may constitute a disciplinary offence for staff and students and will be subject to investigation under the University’s disciplinary procedures. In the most severe instances this could result in dismissal / exclusion. For other associated persons, breach of this policy may result in other contractual or legal or other sanction. Criminal penalties may also apply (see below).
Individuals found guilty of tax evasion can face unlimited fines and/or a prison sentence.
The University may face unlimited fines if it is found to have “failed to prevent” tax evasion taking place. This is why this policy extends to individuals and companies who, whilst not directly employed by the University, are acting on its behalf. The University may also find itself excluded from certain public contracts, potentially affecting its income.
Further guidance and additional information can be found in this policy’s accompanying ‘Anti-Criminal Finances Policy – Guidance and Additional Information’ document.
Guidance and additional information