Business Data: Protecting Against the Criminal Finances Act

business data and metric management

Business Data: Protecting Against the Criminal Finances Act

Corporate tax evasion is a serious crime whether committed purposely or in ignorance. From April 2017, it became a more serious crime with the implementation of the Criminal Finances Act 2017 (CFA). It is now more important than ever to make sure your company's finances are in order as protection against being found in violation of the law. Business intelligence reporting can be a crucial tool to that effect.

As a business data analyst, I see the power and potential of business intelligence reporting to both limit tax liabilities and prevent issues that could later be construed as violations of the law. I can also tell you that many SMEs have access to all the data they need to keep their financial houses in order; they just do not use it to its fullest potential. It is time to change that.

New Offences Under the CFA

The Criminal Finances Act 2017 established two new offences relating to tax fraud. Both offences apply to companies perpetrating UK tax evasion regardless of where they are located as well as businesses with some sort of UK connection that perpetrate tax evasion outside of UK jurisdictions. Limited companies and partnerships can be found guilty of the offences even if tax evasion were perpetrated by employees and other company representatives without the knowledge of management.

You should also note that in order for companies to be prosecuted under the CFA, there must be evidence of criminal tax evasion and the person or persons perpetrating the offence must have done so while performing official duties for the company in question.

The Role of Business Intelligence Reporting

Business intelligence reporting is a broad tool for collecting and analysing data for a full range of purposes. It provides a history of where a company has come from; it paints a picture of the company's current state; it utilises predictive analysis to determine where a company is headed in the future. All the data utilised in business intelligence reporting can also be analysed for tax exposure purposes.

How I Can Help

As a business data analyst, I can use business intelligence reporting tools to offer a comprehensive risk assessment for your company. I can use data to evaluate risk management strategies your company already employs to limit tax exposure. Finally, I can use business data to help your company develop a higher level of due diligence that will ensure no violations of the Criminal Finances Act 2017.

Preventing tax evasion is a simple matter of accountability. A company that has policies and procedures in place for tracking finances and accounting can use the data generated by those procedures to keep track of tax exposure and regulatory compliance. As a business data analyst, I can make this happen for you. If you want to learn more about business intelligence reporting as a tool for protecting against the CFA 2017, please contact me at your earliest convenience. Let us protect your business together.

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Author: Chris Scanlon

Hullo.  I'm a graduate chartered accountant with 25 years experience in blue chip businesses and the last 15 years in owner manged businesses.  My particular skill is turning data into information. Bringing the performance management of the business alive so that ...


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