Press release: Stop facilitating tax evasion or face criminal prosecution, HMRC tells corporations

Corporations could be prosecuted if they fail to prevent staff from criminally facilitating tax evasion under a new HMRC law that comes into effect this weekend

It is already a crime to evade tax, or deliberately help another person to do so, but on behalf of the majority of taxpayers who pay what is due, the UK government is now taking an even firmer stance on corporate fraud in a move designed to drive a change in corporate culture.

From today, the Criminal Finances Act 2017 introduces two new criminal offences – one applying to the evasion of UK taxes and one applying to the evasion of foreign taxes.

The offences hold corporations and partnerships criminally liable when they fail to prevent their employees, agents, or others who provide services on their behalf from criminally facilitating tax evasion. This is a significant change from existing law under which they can only be found liable for criminally facilitating tax evasion if the most senior members of the organisation – typically the board of directors – are aware of the facilitation.

The Financial Secretary to the Treasury, Mel Stride MP said:

Tax evasion is a crime and takes away from the money we need to fund our vital public services.

The vast majority of businesses play by the rules but we must ensure that those that don’t are accountable for their actions.

The new offences will ensure that companies doing business in the UK take reasonable steps to prevent their staff from facilitating tax evasion.

Notes to Editors

  1. The new legislation comes into force on 30 September.
  2. Where there is evasion of UK taxes, any company based anywhere in the world can be liable, regardless of whether it has a business presence in the UK.
  3. Where taxes other than UK taxes are evaded, any company that is (a) incorporated under the law of the UK; (b) carrying out a business or part of a business in the UK; or (c) has staff criminally facilitate evasion from within the UK, can be liable under the UK criminal law for failing to prevent their staff from criminally facilitating the evasion of foreign taxes.
  4. HMRC will be responsible for investigating offences in relation to UK tax. The Serious Fraud Office will be responsible for investigating offences in relation to foreign taxes. HMRC will work closely with the SFO to ensure a robust response to the facilitation of tax evasion.
  5. HMRC uses the full range of both criminal and civil powers to investigate tax cheats, and is successful in more than 90% of the prosecutions undertaken. However, work doesn’t stop there – HMRC always looks to recover the proceeds from any crime committed.
  6. In 2016-17, HMRC collected and protected more than £26 billion of tax that would otherwise have gone unpaid, from those not following the rules.
  7. If you know of anyone committing tax fraud, call our 24-hour hotline on 0800 59 5000 and help us stamp it out.
  8. The Criminal Finances Act 2017 can be found here.
  9. The Government has published guidance on what corporations and partnerships can do to prevent the criminal facilitation of tax evasion. This guidance can be found here.



Speech: “Trafficking is a development issue, it’s a human rights issue, and it’s a security issue. It needs a coherent UN response.”

Thank you Mr President,

It’s clear that people trafficking is a scourge that unites the membership of the United Nations. No country is immune from this awful crime, and so it is right that every country is united in our shared commitment, made in the 2030 Agenda, to end forced labour, modern slavery and human trafficking.

Making sure the Global Plan of Action helps deliver on this commitment will require that we act across a number of fronts. Let me highlight four.

First, we must bring further political attention to the issue of human trafficking: the hidden nature of this crime makes it too easy to ignore. The United Kingdom launched a ‘Call to Action to End Forced Labour, Modern Slavery and Human Trafficking’ as world leaders and their representatives gathered in New York last week. This statement of political intent explicitly welcomes and aligns very closely with the Global Plan. Thirty-seven countries have endorsed this Call and I urge others to do the same.

Second, every country should develop and implement a national strategy that addresses the four key elements of prosecution, protection, prevention and partnerships. The UK’s approach is underpinned by its 2014 Modern Slavery Strategy. To uncover the scale of the problem, every country could also consider producing an estimate of prevalence and statistics on trafficking. In 2013 we estimated there were up to 13,000 victims in the United Kingdom.

Third, we must ensure that trafficking is stamped out of our economies. The International Labour Organization estimates that forced labour generates $150bn of illegal profits each year. We must better regulate labour policies and work with business to eradicate trafficking from supply chains. The UK’s Modern Slavery Act requires every business with global revenues of over $48 million to report on the action it is taking. Governments, too, must address their own procurement practices.

Fourth, our law enforcement and criminal justice systems need specialist capabilities. The UNODC’s last report told us, the number of global convictions remains too low. The UK introduced a comprehensive legal framework in 2015 – and we are now seeing growing numbers of convictions for the new offences it introduced. We are also investing over $11 million in the police and training over 300 new specialist investigators.

Mr President,

Trafficking is a development issue, it’s a human rights issue, and it’s a security issue. It needs a coherent UN response. But to date we have not seen enough progress to address the scale and urgency of the problem. We need UN agencies cooperating and using ICAT effectively – not competing over resources and turf. We urge the Secretary-General to help resolve this persistent challenge.

Because whether we describe it as human trafficking, modern slavery, or forced labour, we must stand together if the exploitation of human beings is to end. We have reviewed our global plan, so let us now act.

Thank you.




Press release: Alistair Burt visits Bangladesh

International Development Minister Alistair Burt has led talks on the situation in Rakhine State with key individuals in Bangladesh to step up efforts to end violence against Rohingya and allow humanitarian access to those in need.

Along with Foreign Office Minister Mark Field the successful series of talks held yesterday (Thursday, 28 September) with government officials and aid agencies centred on how best to provide further lifesaving support to the large influx of refugees in Bangladesh.

Yesterday’s discussions follow talks that Minister Burt held in Thailand with the Deputy Minister for Foreign Affairs, where he pushed for a greater regional response to the violence in Rakhine state and issues of humanitarian access.

Since the violence erupted on 25 August more than half a million Rohingya men, women and children have been forced to flee Rakhine State and have sought refuge in neighbouring Bangladesh. The UK has announced an extra £30 million to meet urgent humanitarian needs and is determined to do its very best and what is necessary to help those that are displaced.

Alistair Burt, Minister for International Development said:

The violence in Burma in the last month has forced hundreds of thousands of Rohingya men, women and children to flee their homes, livelihoods and loved ones.

UK aid is already making a difference on the ground in Bangladesh, but I urge the Burmese authorities to allow aid workers immediate and full access so we can deliver vital support to those living in fear and desperation.

The UK government has so far provided food for 65,000 of the most vulnerable victims, health care for 50,000 of them, and emergency shelter for up to 26,355.

We are also helping 7,500 children, many of whom have suffered traumatic ordeals, including sexual violence.

The UK is leading the way in the humanitarian relief effort, and it is now up to the rest of the world to follow our lead in helping the Rohingyas, not just now but in the long-term.




Speech: Lord Ahmad welcomes conclusions of the 36th Session of the UN Human Rights Council

The UN Human Rights Council concluded its 36th Session today with important resolutions on Burundi, Yemen, Syria, the Democratic Republic of Congo and the death penalty. This session also saw the adoption of the UK’s Universal Periodic Review, where we have been making good progress in important areas.

I am delighted to have attended the Council this session and to have reaffirmed the UK’s strong commitment to the promotion and protection of human rights. I had a positive first meeting with High Commissioner Zeid to discuss human rights priorities and had thep opportunity to meet members of the Syria Commission of Inquiry to set out our continued support to their work. I also met civil society and NGOs to discuss, amongst other topics, the plight of Rohingya muslims in Burma and the humanitarian crisis in Bangladesh. Protecting human rights and individual freedoms is a priority for this Government, for our Prime Minister, and for me personally. It is our collective responsibility, and we will continue to use our membership of the council to speak out about human rights violations and abuses around the world.

I am pleased to see that resolutions on Burundi, Syria, Yemen, DRC, have been adopted at this session, as well as a Council decision on Burma. It is essential we work together with other Member States to hold perpetrators to account.

Burma

The UK welcomes the adoption of a Council decision on Burma, extending the mandate of the Fact Finding Mission. Given the deeply concerning human rights situation across the country, including in Kachin, Shan and Rakhine States, its work is crucial. We once again urge Burma to grant the Mission access to the country, and to cooperate fully with its mandate. We also urge the security forces, under Commander in Chief Min Aung Hlaing, to stop the violence in Rakhine State, allow a rapid return for refugees, and support the swift implementation of the Annan Commission’s recommendations by the civilian government.

Ukraine

The UK continues to see the regular report into, and the discussion of, the human rights situation in Ukraine as essential. We are deeply concerned by the continued high numbers of civilian casualties, detailed by OHCHR, and urge all parties to the conflict to work urgently to achieve a full and sustained ceasefire. We also welcome the thematic report into the human rights situation in illegally annexed Crimea which was undertaken despite the refusal of Russia de facto authorities to allow access to the High Commissioner and his Office, as called for in UN General Assembly Resolution 71/205. We reiterate our call for the de facto authorities to grant access to Crimea for international monitors.

Syria

The human rights situation in Syria remains deeply concerning. The horrific violations and abuses the Syrian people continue to face are carefully recorded by the Commission of Inquiry. Attacks on civilians, obstruction of humanitarian aid, and forced displacement of civilians continue to be carried out by the Syrian regime. It is vital that the Council maintains a strong and unified stance on Syria. An important part of our efforts must be to hold those responsible to account. We therefore welcome the Resolution the Council has adopted and call upon all parties to ensure that the rights of all Syrian citizens are upheld and respected.

Yemen

The deteriorating human rights situation in Yemen was an important priority at this council. We remain deeply concerned by the large scale human rights abuses that continue. We welcome the Council achieving consensus to establish a group of eminent international and regional experts as a concrete step taken by the international community to address the crisis and bring relief to innocent civilians.

Democratic Republic of Congo

The resolution on the Democratic Republic of Congo builds on the international investigation mandated at the last HRC into the violence in the Kasai region. The Council is right to be seriously concerned by heinous human rights abuses and violations that have taken place there. It is important that we have agreed to have a comprehensive OHCHR report on the human rights situation as well as enhanced dialogues through the HRC calendar year to make sure responsibility is determined. I trust that the authorities in DRC will grant the access to the investigation, mandated in June, to ensure that those who bear responsibility will be brought to justice.

Somalia

The UK welcomes the adoption by consensus of the renewed resolution on Somalia. The resolution acknowledges the progress Somalia has made in strengthening the protection of human rights, and the commitment of the Federal Government of Somalia to continuing this progress. It is now vital that Somalia, together with support from the international community, takes forward the steps laid out in the resolution. This includes the establishment of the Human Rights Commission to end the culture of impunity and hold accountable those who commit human rights violations and abuses.

Sudan

I welcome the resolution that the Human Rights Council has adopted on Sudan. We are encouraged by the Government of Sudan’s increased willingness to engage with the international community on human rights issues, including with the Independent Expert. However, regrettably, fundamental freedoms continue to be restricted across Sudan. I therefore welcome the unified stance that the Council has taken. We urge the Government to increase accountability for human rights violations, and to cooperate with the UN/AU Mission in Darfur to increase protection for civilians.

Burundi

The UK remains deeply concerned at the human rights situation in Burundi and is disappointed at the Burundi Government’s response to the Commission of Inquiry’s report, and in particular, their rejection of the report’s conclusions that there were reasonable grounds to believe that crimes against humanity had been committed. Our national statement outlined worrying reports that gunmen entered the office of the UN OHCHR in Bujumbura. The Government of Burundi has a duty to protect diplomatic staff and premises. To this end, I welcome the resolutions on Burundi, and urge the Burundi Government to engage with the international community to bring an end to the violence and to hold the perpetrators to account.

Central African Republic

The UK thanks the Independent Expert on CAR for her report to the Council and welcomes the extension of the mandate of the Independent Expert. The UK is concerned at the increase in human rights violations and abuses due to a resurgence of violence between armed groups. Reports of deliberate targeting of civilians by armed groups, in some cases based on ethnicity or religion is deeply troubling. The continued violence has seen significant numbers of displaced people who are without access to basic humanitarian needs. The UK urges the international community to provide essential assistance to the people of CAR to prevent the onset of a humanitarian crisis.

Modern Slavery

I spoke at the start of this session about the importance the UK places on tackling the crime of modern slavery and our Prime Minister’s personal commitment and leadership to eradicating human trafficking, modern slavery, and forced labour. The newly published “Global Estimates” further highlight the enormous scale of the challenge. At the UN General Assembly this month, I also had the honour to speak at a “Why Slavery?” event, launching a campaign to raise awareness of modern slavery. Tackling modern slavery requires the concerted effort of us all but government leadership is crucial. The UK’s Call to Action, launched at an event chaired by our Prime Minister and UN Secretary General Guterres on 19 September, has been endorsed by 37 countries and we will continue to work tirelessly to get more to sign up. I also encourage all governments to ratify the International Labour Organization’s protocol on forced labour and to work with us in supporting the “50 for Freedom” campaign. We will continue to work with the international community and use opportunities such as the UPR to press for further action on this critical agenda.

PSVI

At the UN General Assembly, together with Special Representative of the UN Secretary General on Sexual Violence in Conflict Pramila Patten, I also launched the Principles for Global Action on preventing and addressing stigma affecting victims of sexual violence in conflict. The Principles for Global Action is a key tool for policymakers and practitioners and aims to provide a survivor-centred approach to working to end stigma associated with conflict-related sexual violence. This document incorporates the expertise of 13 UN Agencies, NGOs, civil society, academics, international organisations and donor countries. The guide was also informed by experiences of survivors and practitioners from 16 conflict affected countries, and is a truly global document to help tackle stigma worldwide.

UK Universal Period Review Adoption

In May this year the UK underwent its 3rd cycle of the Universal Periodic Review. Last week, we set out our position on all 227 recommendations we received from Member States in May during the UPR dialogue. We also voluntarily committed to providing an update on up to 5 recommendations by May 2018, and an update on all recommendations via a Mid Term Report in 2019. We are clear that the UPR is not just a three and a half hour dialogue that occurs for all States every four years. Each cycle builds on the last, with Mid Term Reports and other updates being an important way to demonstrate ongoing commitment to the UPR.

The Human Rights Council is a crucial platform, allowing Member States to support and uphold universal rights around the world. As an outward-looking, globally-minded, and inclusive country, the UK has always played an active role in the Council and other UN human rights fora. The UK will continue to promote universal human rights as a foundation for development and a vital tool for conflict prevention, resolution and reconciliation.




Press release: International Development Secretary calls for aid to reach Burma

Following the UN Security Council’s meeting on Burma yesterday, International Development Secretary Priti Patel has continued her calls for humanitarian access into Burma to ensure that further lives are not lost.

International Development Secretary Priti Patel said:

I am appalled that more than half a million Rohingyas have been forced to flee their homes because of the horrific violence in Burma. Those who escaped, carrying little or nothing, have had to make the treacherous journey across the border into Bangladesh to seek safety, with countless people dying or losing loved ones.

I implore the Burmese authorities to ensure immediate and sustained humanitarian access into northern Rakhine State so that UK aid can provide a lifeline to all those who have been left to suffer and who are in desperate need of food, water, shelter and healthcare.

The relentless denial of aid is a matter of life and death for those still in northern Rakhine. It is utterly intolerable that the military who are responsible for this inhumane catastrophe have not heeded calls for restraint and pleas to allow those who are now refugees to return safely to their homes.

Britain is leading the way as the largest bilateral donor to the crisis in Bangladesh and UK aid is already making a difference on the ground, providing food for 65,000 of the most vulnerable victims, health care for 50,000, and emergency shelter for up to 26,355. We are also supporting 7,500 children, many of whom have suffered traumatic ordeals and are at risk of sexual violence and trafficking.

The world must follow the UK in helping the Rohingyas, not just now but in the long-term.

Notes to editors:

The UK is deeply concerned by the violence taking place in Rakhine State, particularly by the hundreds of thousands of people fleeing that violence and the reports of grave human rights violations taking place.

As of 29 September 501,800 people have fled the violence into neighbouring Bangladesh. Numbers are rising.

The UK has been a leader in responding to the crisis – in speed and size – to help meet the urgent humanitarian needs of vulnerable men, women and children in both Bangladesh and Burma.

Prior to the latest violence which began on the 25 August 2017, we committed £5.9 million to meet the needs of the most vulnerable refugees and the host communities who support them.

In response to the latest influx we have provided a further £30 million of support.

Our existing work in the region meant that we were already in position to provide life-saving support when the crisis flared – without this, aid would have taken much longer to reach those in need. And we are sending more aid to Bangladesh.

In Rakhine State in Burma, aid workers have been getting British-funded humanitarian assistance to many tens of thousands of people. DFID’s partners are ready to provide emergency food to 30,000 people and to treat more than 3,000 severely malnourished children and pregnant women, but the Burmese authorities must stop refusing to grant access.

This lack of access on the Burma side means vital needs will not be met and lives lost. Britain urgently calls upon the Burmese military to end the violence in Rakhine and the Government of Burma to allow immediate and full humanitarian access and support for the people and communities affected.

We have raised the situation in two UN Security Council meetings and led work in the Council to develop an international response. The Foreign Secretary also held a Ministerial meeting of General Assembly members at the UN General Assembly this month to drive this process forward.

Mark Field, Minister for Asia at the Foreign and Commonwealth Office, visited Rakhine State in Burma on Wednesday, 27 September. He held talks in Burma with State Counsellor Aung San Suu Kyi to press for an urgent resolution to the crisis in Rakhine.

On Thursday, 28 September Minister Burt and Minister Field hosted a series of high-level talks in Dhaka, Bangladesh with key Government officials and aid agencies to identify how best to provide lifesaving support to the large influx of refugees in Bangladesh.

Britain is ready to support the recommendations of the Kofi Annan led Rakhine Advisory Commission to assist the long-term development of all people in Rakhine state, but right now the immediate action is for the security forces to end the violence and the Government of Burma to allow humanitarian access.