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Why financial training could save you a packet

19th Nov 2019
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How well do you audit your supply chain for fiscal compliance?

According to reports published recently, companies could be prosecuted and face "unlimited fines" if they fail to spot tax evasion by their suppliers.

HMRC is now using its already formidable powers to raid premises and demand inspections of a company’s records as it cracks down on VAT and contractor tax frauds. Ignorance of the Law is not a defence, so it is imperative for anyone who deals with external suppliers that they understand what their responsibilities are under the Bribery Act, Tax Evasion and other laws relating to financial compliance.

Tax advisers recommend that even small and micro businesses carry out due diligence on their suppliers and contractors. They also advise that employees and managers understand the implications of tax evasion and to get to know their responsibilities under “corporate criminal offence” legislation.

Laws which clamp down on tax evasion include the Criminal Finances Act and The Bribery Act 2010 and while muti-national and global organisations need to have scrupulous processes for checking on tax fraud, even the smallest companies are not exempt from prosecutuion and could face stiff penalties for non compliance.

So what is the best way of doing this and ensuring that everyone in your business is compliant?

Obviously training is essential and whenever compliance training is provided it need to be easily understood and digestible for non-finance managers and staff. It must always be updated to ensure the very latest changes in the law are included so any kind of eLearning should be automaticaly refreshed to allow for this.

Courses for those who deal specifically with suppliers should be differentiated from those who don't and so a one size fits all approach (which may be suitable or indeed preferable for HR related issues such as Divesrity training) will not suffice here.

When looking for financial training providers keep all the above in mind.



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