Statement with regards to preventing the facilitation of tax evasion

Statement with regards to preventing the facilitation of tax evasion

We are committed to complying with our obligations in relation the Criminal Finances Act 2017, and specifically to reinforce a culture within our organisation that the facilitation of third-party tax evasion is not acceptable.

This statement has been implemented by senior management to reflect our commitment in this respect.

We recognise that as an organisation, The Hesley Group Limited (“The Hesley Group”) is obliged to implement reasonable procedures which would serve to prevent the facilitation of third-party tax evasion.

This document has been drafted and is intended to:
• Be circulated to all associated persons as defined by the Criminal Finances Act 2017, and
• Reflect The Hesley Group’s commitment to meeting our obligations.

Summary of our statement
The Hesley Group does not tolerate tax evasion or the facilitation of tax evasion, and we are committed to ensure that this is engrained in our organisation’s culture.

We expect all associated persons of The Hesley Group to abide by both our overall statement in this respect, and the specific details as set out in this document. All associated persons are expected to represent the organisation in this respect accordingly.

Criminal Finances Act 2017
The Criminal Finances Act 2017 implements two criminal offences related to the facilitation of third part tax evasion:

• The failure to prevent the facilitation of UK tax evasion by an associated person, and
• The failure to prevent the facilitation of foreign tax evasion by an associated person.

The legislation has been effective since 30 September 2017 and introduces these two criminal offences. These offences have been implemented with a view to holding organisations like our own to account for the criminal actions of our associated persons.

In the event a person associated with The Hesley Group facilitates a third-party’s tax evasion, The Hesley Group will be subject to a strict liability criminal offence. The consequences of a criminal conviction can be significant, including an unlimited fine and the associated reputational damage.

The Hesley Group’s only defence against such a charge is if we can evidence that we have implemented reasonable prevention procedures. We are essentially required to demonstrate that we have taken all reasonable steps to ensure our systems and processes serve to prevent the facilitation of third party tax evasion.

Who this statement covers
This statement applies to all of The Hesley Group’s associated persons.

Associated persons
We consider our associated persons to include all employees and any other third-party who provides services for or on behalf of The Hesley Group.

Any reference to employees includes directors, officers, senior management, temporary workers, consultants and contractors of The Hesley Group.

When determining whether a third-party provides services for or on behalf of The Hesley Group, this is primarily, but not exclusively, determined by whether the third-party provides products or services directly to the people we support. This would typically refer to suppliers, sub-contracted service providers and agencies.

What this statement covers

This statement serves to cover how The Hesley Group’s associated persons interact with the individuals, companies or other organisations they meet whilst acting on The Hesley Group’s behalf. This includes all clients, customers, suppliers, intermediaries, agents, advisers and government officials and bodies. Where relevant this includes all current, former and potential relationships of these nature.

The Hesley Group’s associated persons must not facilitate the evasion of tax by any third parties (individuals or organisations) that they interact with whilst acting on The Hesley Group’s behalf.

The third parties will be considered to have committed tax evasion if they have deliberately failed to pay the right amount of tax. In the context of the Criminal Finances Act 2017, this includes any tax over which HMRC has legislative and enforcement responsibility.

The Hesley Group’s associated persons will have facilitated a third-party’s tax evasion if they deliberately assist that party in evading an exposure to tax. There are a multitude of ways in which tax fraud could be facilitated, but simple examples include the issuance of false or manipulated invoices or the settlement of monies to an off record or offshore bank account.

The facilitation of third-party tax evasion is, of itself, a criminal offence. Any person associated with The Hesley Group who has facilitated a third-party’s tax evasion will not only expose The Hesley Group to a criminal charge, but they will also personally face criminal prosecution for their actions.

Our approach to implementing reasonable prevention procedures
The Hesley Group does not tolerate tax evasion or the facilitation of tax evasion.

The Hesley Group expects all persons associated with The Hesley Group to not facilitate third-party tax evasion, and to act in accordance with the reasonable procedures we have implemented.

The Hesley Group expects our associated persons to bring to our attention any instances of third parties seeking their assistance to evade tax. Any such instances should be disclosed in accordance with our statement.

The Hesley Group expects the third parties we engage with to recognise equally the obligation of preventing the facilitation of tax evasion. Where third parties, whether clients, supplier or otherwise, do not have similar statement relating to the prevention of the facilitation of tax evasion, we will give due consideration as to whether that relationship should commence or continue.

Associated Persons’ responsibilities
We are building a culture within The Hesley Group that emphasises that the facilitation of third-party tax evasion is not acceptable.

The implementation of this culture, and the prevention of the facilitation of tax evasion, is the responsibility of all associated persons.

The Hesley Group expects all associated persons to:

• comply with this statement, and specifically to not facilitate the tax evasion of third parties whilst acting on our behalf;
• comply with all reasonable procedures we have implemented in order to prevent the facilitation of third-party tax evasion;
• bring to our attention suspected instances of third-party tax evasion, and facilitation of the same; and
• bring to our attention any instance whereby they have been asked or encouraged to facilitate a third-party’s tax evasion

All associated persons must read and comply with the statement.

If an associated person does not comply with this statement
Any employee who breaches this statement will face disciplinary action, potentially resulting in dismissal for misconduct or gross misconduct.

The Hesley Group may terminate our relationship with any other individuals or organisations providing services for or on behalf of our organisation, if they breach this statement.

Reporting by associated persons
The Hesley Group expects all associated persons to report instances of:

• third parties requesting them to act in such a way that may result in tax evasion being facilitated;
• other associated persons facilitating the tax evasion of a third-party;
• tax evasion being committed by third parties with which our organisation has a relationship; and

In the event an associated person identifies an example whereby our present systems and processes leave The Hesley Group at risk of facilitating third-party tax evasion, we expect this to also be reported.

In the event a report is required, our employees can notify the matter in accordance with our Whistleblowing Document.

In the event a report is required by an associated person who is not an employee, they can notify their point of contact in the organisation in the first instance. In the event it would not be appropriate to notify their point of contact, the associated person can report the matter to the directors of The Hesley Group.

Review of the organisation’s statement & training procedures
It is important for our reasonable prevention procedures, including this statement, to be continually monitored and evaluated in order to comply with our statutory obligation. We will ensure our documents and procedures are suitably reviewed on a periodic or event driven basis.

We are committed to ensuring our employees, both present and future, are suitably trained with regards to the Criminal Finances Act 2017. We will ensure our employees understanding in this respect is refreshed in a periodic or event driven basis.