05/09/2025
Written by Adam Kendall, Louise Mansfield, and Eve Mikhael
In the wake of the new Failure to Prevent Fraud (“FTPF”) offence which came into force on 1 September 2025 (and which is discussed in our article at the beginning of the month), it is of equal importance that companies keep in mind the pre-existing corporate criminal offences for failing to prevent tax evasion and bribery. All of these corporate criminal offences work hand in hand, and act as a reminder of the Government’s focus on ensuring companies take steps to prevent these financial crimes.
The Criminal Finances Act 2017 – a refresher on the offence of failing to prevent the facilitation of UK tax evasion and the first corporate prosecution
The Criminal Finances Act 2017 introduced powers to charge companies and partnerships operating in the UK who fail to stop their employees or associates from facilitating tax evasion. This legislation aimed to make criminal prosecutions easier to pursue and it also strengthened the penalties for such offences.
In summary, the Criminal Finances Act 2017 introduced two main corporate offences which apply to companies, corporate bodies, and partnerships where an associated person (e.g. an employee, agent or contractor) acting for or behalf of the relevant body, facilitates tax evasion. The two offences are:
- Section 45: failure to prevent the facilitation of UK tax evasion; and
- Section 46: failure to prevent the facilitation of foreign tax evasion
The only defence to the Section 45 and 46 offences is for an organisation to have in place reasonable prevention procedures to prevent the facilitation of tax evasion.
Prosecutions under the Criminal Finances Act 2017 have been very limited since its introduction. Data has highlighted that as of 31 December 2024, HMRC had reviewed and rejected 114 cases. In fact, HMRC has only initiated one corporate prosecution very recently, on 11 August 2025. An accountancy firm, Bennett Verby, has reportedly been formally charged in relation to an alleged research and development tax credit repayment fraud involving around £16 million with the firm and six individuals (including a Director at the firm) charged with a Section 45 offence along with cheating the public revenue and money laundering. A trial has been listed for September 2027. This case shows that the HMRC are willing to bring prosecutions and may suggest more will be on the horizon.
The Bribery Act 2010 – a refresher on the offence of failing to prevent bribery by a person performing services on behalf of the organisation
Under the Bribery Act 2010, it is an offence for a commercial organisation to fail to prevent bribery by a person performing services on behalf of the organisation. Like the tax evasion offence, it is a defence to the bribery offence if the organisation can demonstrate it had adequate procedures in place to prevent such bribery.
On 17 April 2025, the Serious Fraud Office (“SFO”) charged United Insurance Brokers Limited with the corporate offence of failing to prevent bribery under Section 7 of the Bribery Act 2010. The company was charged with failing to prevent associates from bribing state officials in Ecuador between October 2013 and March 2016. Should this matter proceed to trial, it will mark the first time the SFO has brought a failure to prevent bribery case before a jury. A trial would therefore set a legal precedent in the UK by establishing how juries assess corporate liability, and the defence of “adequate procedures” under the Act. Previously matters have resolved via settlement and what are known as Deferred Prosecution Agreements.
United Insurance Brokers Limited were due to enter a plea at Court on 7 May 2025 but this has not been published due to reporting restrictions. It is however a case to watch and SFO’s decision to bring charges against United Insurance Brokers Limited demonstrates the importance of UK companies having effective and clearly documented anti-bribery procedures in place. It also highlights the SFO’s intention to use the Bribery Act 2010 as a means of cracking down on international bribery and corruption.
A push for scrutiny
The Government’s intention from the above cases and the new FTPF offence shows that companies and individuals not only need to ensure they are not only committing these offences but also being proactive in preventing them.
Our advice to all companies and organisations is to continue to review and test their reasonable prevention procedures in relation to bribery, tax evasion and fraud. As a part of that there should be a re-assessment of whether the existing controls in place are effective and that employees and associated persons receive training and fully familiar with the procedures in place.
Need further help?
Our Corporate Crime team at Bevan Brittan are able to assist your company/organisation in dealing with the new FTPF offence, and other financial crime offences including the above bribery and tax evasion offences.
