Anti-Tax Evasion Policy
Anti-Tax Evasion Policy
Contents
Version Control
2. About this policy
3. Details
1. Version Control
Date Version Updates Name
September 2019 V1.0 Update of last review date and next review date (previously January 2019/January 2020)
January 2020 V1.1 Redated for January 2020
September 2020 V1.0 Redated for September 2020
September 2021 V1.0 Redated for September 2022
September 2022 V1.0 Redated for September 2023
January 2024 V1.4 Redated for January 2024
Annual review
Next Review Date: January 2025
Director: Abdulaziz Alnaim
Responsible Officer: Stefan Dawidowski
1. Introduction
Mayar Capital Ltd. aims to retain the integrity of the United Kingdom’s (“UK”) economy by adopting measures to prevent the facilitation of tax evasion. In ensuring that our firm isn’t abused for the purposes of tax evasion by our staff/representatives, either for their own benefit or on behalf of a third party such as a client. Mayar Capital Ltd. is committed to creating and maintaining a culture where tax evasion is viewed, at all levels of the business, as fundamentally unacceptable.
This policy outlines Mayar Capital Ltd.’s approach to preventing the facilitation of tax evasion by anyone associated with the firm. In developing this policy, the firm considered its legislative obligations under the Criminal Finances Act 2017, guidance issued by Her Majesty’s Revenue and Customs (“HMRC”) and recognised industry best practice.
Mayar Capital Ltd. recognises that it has a statutory duty under UK law to prevent the facilitation of tax evasion, either domestically and overseas, by any individual associated with the firm. Subsequently, Mayar Capital Ltd. pledges to allocate sufficient resources into the firm’s internal controls, monitoring system, human resources and staff training to prevent financial crime.
1.1 Scope
This policy applies to the following parties:
• Full-time employees of Mayar Capital Ltd..
• Part-time employees of Mayar Capital Ltd..
• Temporary contractors of Mayar Capital Ltd..
• Individuals on working experiencing or interning at Mayar Capital Ltd..
• Agents of Mayar Capital Ltd..
• All subsidiaries or branches of Mayar Capital Ltd. operating in the UK, European Economic Area (“EEA”) state, or any other third country.
1.2 Objectives
The objectives of the policy are to:
• Outline Mayar Capital Ltd.’s procedures, systems and controls for preventing the facilitation of tax evasion by the firm’s representatives.
• Emphasis Mayar Capital Ltd.’s zero-tolerance approach towards facilitating tax evasion.
• Name the Responsible Officer for Mayar Capital Ltd.’s compliance with Anti-Tax Evasion legislation, as well as maintaining and implementing this policy.
• Outline the responsibilities of the firm’s senior management, the Responsible Officer for the firm’s Anti-Tax Evasion strategy and the firm’s employees.
• Summarise the tax evasion risks that Mayar Capital Ltd. is vulnerable to and how the firm intends to counteract these risks in accordance with our risk-based approach.
• Explain how Mayar Capital Ltd. trains employees in understanding the firm’s Anti-Tax Evasion requirements and how to prevent it.
• Explain Mayar Capital Ltd.’s approach to developing procedures and processes in accordance with HMRC’s six principles for firms to prevent tax evasion.
2. What is Tax Evasion?
Mayar Capital Ltd. takes the view that tax evasion is: “The illegal practice of knowingly intending to, or having taken steps to, avoid paying one’s tax liability”.
Tax evasion is usually conducted through an individual or corporation knowingly misrepresenting or concealing the true state of their tax liabilities to the relevant tax authorities.
There are three stages to the tax evasion process:
• Stage 1: Criminal tax evasion by a person.
• Stage 2: Criminal facilitation (e.g. aiding and abetting) of the offence of tax evasion by another person.
• Stage 3: A firm commits an offence if the person facilitating tax evasion does so whilst acting in the capacity of a person associated or representing that firm.
The Criminal Finances Act 2017 applies to:
• UK incorporated companies – in the case of facilitating tax evasion in the UK and other jurisdictions.
• Companies incorporated overseas – in the case of facilitating tax evasion in the UK.
As Mayar Capital Ltd. is incorporated in the UK, the firm will be liable to an offence under the Criminal Finances Act if one or a group of our staff/representatives facilitate tax evasion unless the firm can demonstrate that it had reasonable procedures in place to prevent such an occurrence from happening.
3. Statement of Zero Tolerance to Tax Evasion
Mayar Capital Ltd. does not tolerate tax evasion in any form. The scope of the firm’s zero-tolerance approach encapsulates all individuals listed in section 1.1 of this policy, including management and employees of the firm’s branches and subsidiaries.
Under this policy, Mayar Capital Ltd. staff/representatives are prohibited from arranging to facilitate or criminally facilitating tax evasion in the UK or another jurisdiction, either for their own illicit benefit or on behalf of another party.
In the eyes of Mayar Capital Ltd., such behaviour would constitute a violation of the firm’s Anti-Tax Evasion policy and the individual(s) responsible would be subject to strict disciplinary measures.
4. Responsibilities of Senior Management & Employees
Mayar Capital Ltd. clearly defines the roles and responsibilities of all individuals with oversight of the firm’s Anti-Tax Evasion strategy and responsibility for the firm’s compliance with all Anti-Tax Evasion requirements.
4.1 Responsible Officer
Mayar Capital Ltd. has appointed Stefan Dawidowski as the Responsible Officer for implementing, maintaining and monitoring compliance with this policy. Stefan Dawidowski assumed this responsibility on 1st August 2021 and is judged to be adequality skilled to hold the role by the firm’s senior management. The individual is responsible for:
• Implementing the procedures and processes outlined in the policy to prevent tax evasion by the firm’s representatives.
• Taking ownership of the risk-based approach to Anti-Tax Evasion applied by the firm.
• Conduct a periodic risk assessment to identify any emerging tax evasion risks the firm is facing or will face.
• Keeping up-to-date with legislative changes that impacts the firm’s Anti-Tax Evasion strategy, as well as industry best practice issued by relevant bodies.
• Update Anti-Bribery and Corruption policies and procedures in accordance with any legislative changes or advancements in best practice.
• Monitor compliance with the policy throughout the firm.
• Regularly updating senior management on the effectiveness of the firm’s Anti-Tax Evasion strategy and making appropriate recommendations for improvement.
4.2 Senior Management
The senior management of Mayar Capital Ltd. fully endorses the firm’s Anti-Tax Evasion policy. The senior management body is responsible for:
• Developing and disseminating a corporate culture within the firm which helps prevent tax evasion.
• Retaining oversight of the firm’s Anti-Tax Evasion policy.
• Investing significant responsibility to the firm’s Responsible Officer for Anti-Tax Evasion to implement and maintain effective processes and policies.
• Allocate significant resources toward the firm’s Anti-Tax Evasion strategy so the firm complies with all current requirements.
• Being involved in the creation of Anti-Tax Evasion policies and procedures.
4.3 Employees
All Mayar Capital Ltd. employees are required to follow this policy and all Anti-Bribery and Corruption procedures. Mayar Capital Ltd. employees are also required to:
• Attend regular training on Anti-Tax Evasion organised by the firm.
• Abide by all policies and procedures relating to Anti-Tax Evasion enforced by the firm.
• Report any suspicions of tax evasion occurring within the firm to the Responsible Officer for Anti-Tax Evasion.
5. UK Legislation
Mayar Capital Ltd. is fully aware of the UK’s legislative framework relating to Anti-Tax Evasion. Mayar Capital Ltd. also provided regular training to our employees, agents and subsidiaries to ensure they have sufficient knowledge of the UK’s legislative framework.
Mayar Capital Ltd. is required to adhere to the following legislation, regulation and guidance:
• Criminal Finances Act 2017.
• FCA Financial Crime: A Guide for Firms.
• Tackling tax evasion: Government guidance for the corporate offences of failure to prevent the criminal facilitation of tax evasion = Guidance by HMRC.
5.1 Offences
The above legislation outlines the UK’s Anti-Tax Evasion offences, which Mayar Capital Ltd. is committed to avoiding. The key offences under the applicable legislation are as follows:
• Failing to prevent tax evasion facilitating in the UK (Subject to conviction and an unlimited fine)
o It is an offence if a person associated with a firm commits a UK tax evasion facilitation offence when acting in the capacity of a person associated with the firm. In such a case, the firm commits an offence if they have failed to implement prevention procedures in place to counter tax evasion facilitation. Firms based anywhere in the world are liable to prosecution if they commit this offence.
• Failing to prevent tax evasion facilitation in an overseas jurisdiction (Subject to conviction and an unlimited fine)
o It is an offence if a person associated with a firm commits a tax evasion facilitation offence in an overseas jurisdiction when acting in the capacity of a person associated with the firm. In such a case, the firm commits an offence if they have failed to implement prevention procedures in place to counter tax evasion facilitation. Only firm’s that are incorporated in the UK are liable to prosecution if they commit this offence.
6. Risk-Based Approach
In accordance with guidance issued by HMRC, Mayar Capital Ltd. develops and implements its Anti-Tax Evasion strategy in a risk-based way. As such, Mayar Capital Ltd. implements procedures and controls in keeping with the size, nature and specifics of the firm, in order to best counter relevant tax evasion risks.
Mayar Capital Ltd. will periodically assess the nature and extent of the firm’s and firm representative’s risk to tax evasion facilitation. Once a risk assessment is completed, Mayar Capital Ltd.’s Responsible Officer will review assessment and recommended changes to the firm’s Anti-Tax Evasion procedures and controls to mitigate the identified risks. Once these recommendations have been signed-off by the firm’s senior management, the firm’s policies, procedures and controls will be subsequently updated.
7. Six Principles
Guidance issued by HMRC to firms on the prevention of facilitating tax evasion outlines six principles that firms should consider when developing their Anti-Tax Evasion procedures. These principles are not prescriptive and, as recommended by HMRC, should be incorporated by Mayar Capital Ltd. in accordance with the size, nature and complexity of the business in accordance with their risk-based approach.
HMRC’s six principles are listed below:
• Risk Assessment.
• Proportionality of risk-based prevention procedures.
• Top Level Commitment.
• Due Diligence.
• Communication (including training).
• Monitoring and Review.
7.1 Risk Assessment
Mayar Capital Ltd. will periodically assess the nature and scale of the tax evasion risks of which the firm and persons associated with it are exposed. The firm’s Responsible Officer is authorised to conduct a periodic risk assessment of this firm to discern any evolving or unaddressed risks. The risk assessment will be documented and be utilised to inform Mayar Capital Ltd.’s policies and procedures relating to Anti-Tax Evasion.
When conducting a risk assessment, the firm will take into account the following risk factors, as per HMRC’s guidance:
• Country Risk – evidenced by jurisdictions having perceived high levels of secrecy or reputation for being used a tax shelter.
• Sectorial Risk – some sectors pose a higher risk of facilitating tax evasion than others, such as financial services and tax advisory.
• Transaction Risk – Certain variants of transactions present higher risks, such as complex tax planning structures.
• Business Opportunity Risk – Such risks might arise in high-value projects or projects involving many parties, jurisdictions or intermediaries.
• Business Partnership Risk – Certain relationships may involve higher risk, such as the use of intermediaries in transactions.
• Product Risk – Certain products and services may have a higher risk of misuse by either clients or associated persons.
• Customer Risk – there may be a greater risk of facilitating tax evasion by an associated person due to the inherent risk of the customer.
7.2 Proportionate Procedures
Mayar Capital Ltd. implements Anti-Tax Evasion procedures that are proportionate to the risk of people associated with the firm facilitating tax evasion. The firm does not seek to implement a burdensome ‘one-size-fits-all’ approach to its procedures where every conceivable risk, however remote, is addressed. The firm’s procedures form part of the firm’s risk-based approach to preventing tax evasion.
The firm implements proportionate procedures as defined by HMRC in their guidance as:
• Formal policies adopted by a relevant body to prevent the criminal facilitation of tax evasion by those acting on its behalf.
• Practical steps taken to implement these policies, enforcement of compliance with the policies, and the monitoring of the policies’ effectiveness.
The areas covered in Mayar Capital Ltd.’s procedures include:
• A process for reporting wrongdoing by persons associated with the firm.
• Protection for whistle-blowers.
7.3 Top-Level Commitment
The senior management of Mayar Capital Ltd. recognise how important it is to be personally involved in fostering a culture where tax evasion, in any form, is viewed as wholly unacceptable. The firm’s senior management is committed to setting a personal example to everyone associated with the firm so that they always act with the utmost integrity in the course of their business.
Mayar Capital Ltd.’s senior management pledges to be appropriately involved in the following areas of the firm’s Anti-Tax Evasion strategy:
• Making key decisions relating to the firm’s tax evasion risk.
• Communication of the firm’s Anti-Tax Evasion stance.
• Developing the firm’s Anti-Tax Evasion strategy.
7.4 Due Diligence
Mayar Capital Ltd. will apply due diligence measures to mitigate tax evasion risk in accordance with the firm’s risk-based approach. The due diligence procedures that the firm puts in place coincide with the risks the firm is exposed to, as identified in our most recent risk assessment.
The firm currently has the following due diligence processes in place:
• Administrator review of all investors taking a risk based AML approach
• MLRO review of all investors taking a risk based AML approach
• Independent accounting of Firms and Funds activity.
• Independent audit of Firms and funds activity.
7.5 Communication (including training)
Mayar Capital Ltd. seeks to ensure that its anti-tax evasion policies and procedures are embedded and understood throughout the firm, including through the use of training. Through our communication plan, Mayar Capital Ltd. is enhancing awareness and understanding of the firm’s procedures and a zero-tolerance approach to tax evasion.
The firm communicates policies, procedures and its approach to relevant internal and external parties associated with Mayar Capital Ltd. in numerous ways. See below for a summary of our communication methods:
• Thistle Knowledge Center mandatory training
• Mayar Compliance Financial Crime policies found in Mayar firm wide documents.
Training is provided to all employees and agents during their induction to the firm and at regular intervals during the course of their association with the firm. The firm’s Anti-Tax Evasion training programme covers the following areas.
• General Anti-Tax Evasion training – including laws and offences of tax evasion and tax evasion risks.
• Specific tax evasion risks – training relating to specific tax evasion risks associated with the firm and each employees position in it.
• Reporting tax evasion within the firm.
7.6 Monitoring and Review
It is important that Mayar Capital Ltd. continually monitors the effectiveness of its Anti-Tax Evasion policies and procedures and implements a function to review and update them where necessary. The tax evasion risk that the firm is exposed to may change over time, so Mayar Capital Ltd. monitors and reviews the firm’s internal processes to mitigate the risks as soon as practicable after they are identified.
Mayar Capital Ltd. has the following measures in place to monitor the effectiveness of our strategy:
• Annual review of all investor documents by the administrator and MLRO
• Monthly, quarterly and annual independent review of accounting of Firm and Funds activity
• Independent annual audit of firm and funds activity
8. Training
Mayar Capital Ltd. employees and agents are provided with Anti-Tax Evasion training upon their induction to the firm. Employees and agents are also provided with annual training/refresher training by the firm.
Thistle Knowledge Center: Anti-Bribery and Corruption / Anti-Tax Evasion course
Employees are training in all areas detailed in section 7.5 of this policy.
Employee training records are to be retained and evidenced on each individual employee’s Continual Professional Development (“CPD”) Log alongside the firms central training log. Records are required to be retained for five years.