Does your organisation have an up-to-date gifts and corporate hospitality policy in place? Are you able to easily register any gifts you receive or give? Having an up-to-date gifts and corporate hospitality policy in place will help you comply with your responsibilities under the Bribery Act and other anti-corruption legislation.
A corporate gifts and hospitality policy sets out an organisation’s policy with regard to when and whether employees are allowed to accept gifts both within and outside of the work premises. In the case of a gift that an employee is allowed to receive, the policy sets parameters for the acceptable value and type of gift that is permissible to receive. The policy also defines under what circumstances an employee may receive a gift.
What should be included in a gifts and corporate hospitality policy?
The purpose of such a policy is to ensure that your organisation and its employees comply with the anti-bribery and corruption policy, bribery laws and best practice in combating corruption in all of the countries and business areas in which you operate. The policy should complement your organisation’s bribery and corruption policy. Here is some guidance on what the policy should include.
In 2020, Airbus paid a record £3bn in fines for ‘endemic’ corruption. This settlement surpassed the previous UK record for a corporate fine for bribery, which was the £671m paid by Rolls-Royce, Britain’s luxury car manufacturer, in 2017.
Despite the UK Bribery Act having come into force in 2010, bribery is still a hugely problematic issue in corporate life. Billions of pounds of fines are levied every year and frequent reports hit the headlines of investigations and prosecutions from the US Department of Justice and UK Serious Fraud Office.
Companies should have strict policies in place to ensure all employees understand the steps they need to take to ensure their company cannot be found liable of bribery or corruption. The policy should apply strictly to all employees, partners, agents, consultants, contractors and any other people or bodies associated with the organisation. VinciWorks has therefore created an anti-bribery and corruption policy that can easily be edited to suite your organisation’s staff and industry. Continue reading
In light of the COVID-19 pandemic, the UK decided to defer DAC6 reporting by six months
We are publishing a series of guides on how each EU member state has implemented DAC6. The guide provides a preview to our full up-to-date country-by-country guide to DAC6.
Our next guide focusses on the UK’s implementation of DAC6.
This blog was originally published in July 2020 and was updated in February 2021.
How has the UK implemented DAC6?
Legislation Details
HMRC published the UK DAC6 legislation on 29 December 2020. The legislation is called “The International Tax Enforcement (Disclosable Arrangements) (Amendment) (No. 2) (EU Exit) Regulations 2020”. Here is the UK’s guidance on DAC6.
Taxes covered
UK legislation covers cross-border arrangements. The legislation is in line with the EU Directive, (i.e., direct taxes are in scope while indirect taxes, customs duties or excise duties and compulsory social security contributions are not covered), and does not include domestic arrangements or any additional hallmarks.
NOTE: The scope of DAC 6 has been amended following Brexit through the International Tax Enforcement (Disclosable Arrangements) (Amendment) (No. 2) (EU Exit) Regulations 2020 (2020 No. 1649). The UK has removed hallmark categories A, B, C and E.
Legal Professional Privilege
UK exempts from reporting those intermediaries who are protected by legal professional privilege. In the UK, this includes lawyers, in cases where the information to be reported is covered by legal professional privilege.
In cases where LPP exemptions apply, the reporting obligation shifts to other intermediaries or the relevant tax payer.
Reporting
Reporting will be made either via manual data entry or via XML file upload. Reporting will be done in English.
Penalties
For non-compliance with any part of the regulation a maximum default penalty of up to GBP 5,000 applies, unless an HMRC officer considers this to be inappropriately low. In these cases, a penalty of GBP 600 each day may be applied for an initial period. If failure continues following the initial period, a further fine of GBP 600 for each day may be applied for the period in which the failure continues.
In light of the COVID-19 pandemic, Spain delayed DAC6 reporting by six months
We are publishing a series of guides on how each EU member state has implemented DAC6. The guide provides a preview to our full up-to-date country-by-country guide to DAC6.
Our next guide focusses on Spain’s implementation of DAC6.
This blog was originally published in July 2020 and was updated in February 2021.
How has Spain implemented DAC6?
Legislation Details
Spain’s tax authority, Agencia Tributaria (Tax Agency), published DAC6 legislation, called Ley 10/2020, de 29 de diciembre, por la que se modifica la Ley 58/2003, de 17 de diciembre, General Tributaria, en transposición de la Directiva (UE) 2018/822 del Consejo, de 25 de mayo de 2018, que modifica la Directiva 2011/16/UE por lo que se refiere al intercambio automático y obligatorio de información en el ámbito de la fiscalidad en relación con los mecanismos transfronterizos sujetos a comunicación de información.
DAC6 is implemented by amending General Tax Law 58/2003, of 17 December 2003. The amendments for the final law approval were introduced in Law10/2020 of 29 December 2020.
Taxes covered
Spain’s legislation covers cross-border arrangements. The legislation is in line with the EU Directive (i.e., the legislation applies to all taxes except VAT, customs duties, excise duties and compulsory social security contributions), and does not include domestic arrangements or any additional hallmarks.
Legal Professional Privilege
In Spain there are two categories of intermediaries with regard to the application of LPP exemptions. One category is professionals who carry out “participitory advice”; this category is not covered by an LPP exemption. The other category is intermediaries who provide “neutral advice”; this category is covered by an LPP exemption. Within the category of those who are covered, the following categories of professionals have LPP: law firms, tax advisors, auditors, and some other professions.
In cases where the intermediary because of LPP, the obligation will shift to the taxpayer.
Reporting
Spain requires reporting to be made by intermediaries and relevant taxpayers using an electronic/XML file via the online service of the Spanish tax authorities. The information must be submitted in the official language (Spanish). Some sections can be completed in English, but a Spanish translation will need to be provided.
Penalties
The penalties regime applied under the bill mentions for failure to comply with the reporting requirements a penalty of EUR 2,000 per data/ per omitted / inaccurate data on reportable arrangements, with a minimum penalty of EUR 4,000 and a maximum equivalent of the fees or tax value resulting from the reportable arrangement, or the value of the cross-border arrangement if the offender is the relevant taxpayer. The minimum and maximum amounts will be halved when the information is filed after the deadline without prior notice from tax authorities.
VinciWorks’ new tax evasion course takes a modern, fresh approach to tax evasion training with a focus on industry-specific guidance, role-relevant scenarios and an interactive, engaging approach to ensuring all staff have the skills and understanding they need to prevent facilitation of tax evasion.
The Criminal Finances Act created a corporate criminal offence for failing to prevent the facilitation of tax evasion. This places the responsibility on businesses to have “reasonable procedures” in place to ensure none of their employees or contractors are involved in helping someone evade their taxes anywhere in the world. Guidance from HMRC advises that reasonable procedures should be guided by the following 6 principles:
Risk assessment
Proportionality of risk-based prevention procedures
In light of the COVID-19 pandemic, has taken the decision to defer DAC6 reporting by six months
We are publishing a series of guides on how each EU member state is implementing DAC6. The guide provides a preview to our full up-to-date country-by-country guide to DAC6.
Our next guide focusses on the France’s implementation of DAC6.
VinciWorks is publishing a series of guides on how each EU member state has implemented DAC6. This blog was originally published in July 2020 and was updated in February 2021.
DAC6 in France
The DAC6 regulations in France impose obligations on intermediaries, including tax advisors, consultants, and lawyers, to report specific cross-border arrangements that exhibit certain hallmarks indicating potential tax avoidance or evasion. These hallmarks include features such as confidentiality agreements, tax-deductible payments, or arrangements involving jurisdictions with no or low taxation.
French DAC6 Rules
The French DAC6 rules define various hallmarks that serve as indicators of potentially aggressive tax planning. These hallmarks encompass aspects such as transactions involving deductible cross-border payments, utilisation of loss-making entities, and engagements with non-cooperative jurisdictions.
Intermediaries are required to submit reports to the French tax authorities within 30 days from the availability, implementation, or completion of the cross-border arrangement. The reporting obligation commenced on July 1, 2020, for arrangements executed after June 25, 2018.
How has France implemented DAC6?
Legislation Details
France’s tax authority, Direction Générale des Finances Publiques, published DAC6 legislation, called:
Ordinance No. 2019-1068 of 21 October 2019 on the automatic and mandatory exchange of information in the tax filed in relation to crossborder arrangements (Ordinance No. 2019-1068 du 21 octobre 2019 relative à l’échange automatique et obligatoire d’informations dans le domaine fiscal en rapport avec les dispositifs transfrontières devant faire l’objet d’une déclaration), and
Decree No. 2020-270 of 17 March 2020 regarding Information to be included in the disclosure
on 19 March 2020.
Taxes covered
France’s legislation covers cross-border arrangements. The legislation closely follows the EU Directive and does not include domestic arrangements or any additional hallmarks.
Legal Professional Privilege
France exempts from reporting the intermediaries who are subject to legal privilege under article 226-13 of the French Criminal Code (e.g. lawyers). All professions which are subject to legal privilege under article 226-13 of the French Criminal Code, such as law firms, auditors, accountants, and banks.
Reporting
Reporting will be made online, via the online service of the French tax authorities. The final guidance notes that intermediaries and relevant taxpayers who do not have a tax ID would be needed to take the appropriate steps to obtain one in order to access and report on their dedicated field on the FTA website. The language of reporting is the official language (i.e. French), but it is recommended that information is also provided in English.
Penalties
Failure to meet a reporting obligation (including notification) is penalized with a maximum fine of EUR 5,000 (or EUR 10,000 in case of repeated failure during the current calendar year). The amount of the fine imposed on the same intermediary or taxpayer concerned may not exceed EUR 100,000 per calendar year (as stated in Article 1729 C).
In light of the COVID-19 pandemic, Latvia has chosen to delay DAC6 reporting by six months
We are publishing a series of guides on how each EU member state is implementing DAC6. The guide provides a preview to our full up-to-date country-by-country guide to DAC6.
Our next guide focusses on the Latvia’s implementation of DAC6.
VinciWorks is publishing a series of guides on how each EU member state has implemented DAC6. This blog was originally published in July 2020 and was updated in February 2021.
How has Latvia implemented DAC6?
Legislation Details
Latvia’s tax authority, Valsts ienemumu dienests (State revenue service of the Republic of Latvia), published DAC6 legislation, called Noteikumi par automātisko informācijas apmaiņu par ziņojamām pārrobežu shēmām (Regulations of the Cabinet of Ministers No. 210, Rules on the automatic exchange of information on notifiable cross-border schemes, April 14, 2020), and Grozījumi likumā “Par nodokļiem un nodevām” (Amendments to the Law on Taxes and Duties, 05.03.2020), on 14 April 2020.
Taxes covered
Latvia’s legislation covers cross-border arrangements. The legislation is in line with the EU Directive and does not include domestic arrangements or any additional hallmarks.
The scope of taxes covered by the Latvian law includes all taxes, except VAT, custom duties, excise duties and compulsory social security contributions.
Legal Professional Privilege
The Latvian legislation transposing DAC6 exempts from the reporting obligation due to an LPP right only the Latvian Sworn Attorneys at Law. The initial draft did not include an LPP exemption.
Reporting
It is expected that Latvia will require reporting to be made by intermediaries and relevant taxpayers using an electronic/XML file via the web portal of the Latvian tax authorities.
The information should be provided in the official language (i.e. Latvian). Other languages may be used but the State Revenue Service is then entitled to request translation.
Penalties
The Latvian Tax Administration has the right to impose a fine of up to EUR 3,200 if the relevant taxpayer or intermediary has not complied with the reporting of cross-border arrangements requirements within the legal deadline or in circumstances where the intermediary or relevant taxpayer has failed to comply with the prescribed preparation and filing procedure.
VinciWorks’ new anti-bribery knowledge check is part of our full anti-bribery learning plan suite. The knowledge checks are short, five minute courses that test a user’s understanding of the key aspects of a topic through interactive questions and scenarios. As well as using our pre-made knowledge checks, you can build your own.
Despite the UK Bribery Act having come into force in 2010, bribery is still a hugely problematic issue in corporate life. Billions of pounds of fines are levied every year and frequent reports hit the headlines of investigations and prosecutions from the US Department of Justice and UK Serious Fraud Office.
Bribery cases have ensnared some of the world’s largest companies, biggest sporting bodies and most powerful politicians. The propensity for some people to act corruptly might never change, but our approach to training and compliance can.
VinciWorks has just released Anti-Bribery Fundamentals, a new anti-bribery course that will give employees the opportunity to understand the risks of bribery in their working life as well as to test their knowledge and understanding of the subject, and teach them how to avoid becoming ensnared in bribery.
In this course, we take the lessons from the last ten years of bribery in the corporate world and distill that into an action-packed half-hour course that combines real-life case studies, interactive games, relevant scenarios and a fully customisable course experience to make sure your bribery procedures are fit for purpose.
The Posted Workers Directive (PWD) guarantees a core set of rights to employees sent to work in another EU Member State. It is designed to prevent service providers from undercutting local businesses by adopting lower labour standards.
Whilst the original PWD dates back to 1996, it was revised in 2018, with EU Member States given until 2020 to pass it into national law.
