By Vanessa Docherty King & Wood Mallesons’London office.

- Element one: A taxpayer must commit criminal tax evasion.
- Element two: The company must have facilitated tax evasion by an associated person.
- Element three: The company must have failed to prevent the facilitation of tax evasion.
- The company was incorporated in the UK and has an international branch (as opposed to a subsidiary) that fails to prevent foreign tax evasion facilitation overseas. For example, if a bank was incorporated in the UK and a branch in Australia fails to prevent facilitation of tax evasion in Australia, there will be a UK nexus.
- The company was incorporated outside of the UK, fails to prevent foreign tax evasion facilitation overseas and has a branch (as opposed to a subsidiary) in the UK. For example, if a bank was incorporated in Switzerland and the branch in Switzerland fails to prevent facilitation, there must also be a UK branch for there to be a UK nexus.
- Any part of the conduct constituting part of the foreign tax evasion facilitation offence takes place in the UK. For example, if there is no branch in the UK but a USA company pays its employees in cash while on a trip to the UK to evade US tax, there will be a UK nexus.
- Risk assessment.
- Proportionality of reasonable procedures.
- Top level commitment.
- Due diligence.
- Communication (including training).
- Monitoring and review.