Approved by Council on 13 July 2020.
The University is committed to compliance with financial and tax legislation and to minimising the risk of tax fraud. It is committed to ensuring that its activities are conducted honestly, in accordance with relevant legislation and to the highest standards of integrity.
The University will take appropriate action to prevent the facilitation of tax evasion in respect of its activities under UK law or the law of any other country. Facilitation of tax evasion by University employees or students acting on behalf of the University will be treated as a serious disciplinary offence. Where tax evasion or facilitation of tax evasion is shown to have occurred, the University will take action, which may include dismissal and legal action. The University may terminate its relationship with other individuals and organisations working on its behalf if they breach this policy.
The purpose of this policy is to set out the responsibilities of the University and those working for it in observing and upholding its position on preventing the criminal facilitation of tax evasion. The University will review its processes and procedures regularly in respect of tax legislation including the Criminal Finances Act 2017.
Staff and associated persons who act on behalf of or provide services to the University are expected to act and conduct the activities of the University at all times to the highest standards of integrity and in line with the relevant legislation. This means:
- no member of staff or person acting on behalf of or providing services for the University should seek to evade tax or take steps to facilitate the evasion of tax;
- staff and persons acting on behalf of or providing services for the University must make every reasonable effort to abide by relevant University policies and processes;
- any suspicion of tax evasion or the facilitation of tax evasion should be reported immediately through the channels defined by this Policy, and the University will consider all such reported instances.
3.1 Scope
This Policy applies to all staff and anyone working on behalf of the University, including staff, students, directors, officers, agency workers, seconded workers, volunteers, interns, agents, contractors, external consultants, third-party representatives and business partners, sponsors or any other person associated with the University wherever located.
The policy shall be published publicly via the University website.
This Policy has been adopted by Council and applies throughout the University, apart from Oxford University Press which has its own complementary Policy and procedures. This Policy also applies in full to majority and wholly owned University subsidiary companies unless separate policies have been formally approved and adopted by the Boards of those companies and endorsed by Council’s General Purposes Committee.
3.2 Definitions
Tax evasion - a deliberate effort not to pay tax, and the deliberate and dishonest facilitation of the commission of tax evasion by another person. These are established criminal offences.
Corporate criminal offence - in September 2017, the Criminal Finances Act 2017 (CFA) came into force, creating two new criminal offences for companies and other bodies corporate (including the University) of failing to prevent the facilitation of tax evasion in the (1) the UK or (2) overseas by an associated person. Failure to prevent our employees, workers, agents or service providers facilitating tax evasion could lead to criminal sanctions including an unlimited fine as well as exclusion from tendering for public contracts and reputational damage.
Tax evasion in the UK - deliberately cheating HMRC out of tax due.
Foreign tax evasion offences - evading tax in a foreign country if that conduct is an offence in that country and would be a criminal offence if committed in the UK.
Facilitation of tax evasion - another person knowingly assists in the evasion of tax.
3.3 Examples
Examples of tax evasion include, but are not limited to:
- Deliberately misdescribing self-employment status (i.e. requesting to be treated as a consultant rather than an employee) to evade employment taxes.
- Defining another organisation as a collaborator rather than a supplier in order to evade VAT.
- Dishonestly stating that goods qualify for medical VAT relief when they will not be used on relevant activities.
- Evading tax on benefits by deliberately failing to make appropriate declarations on an expenses claim form.
- Falsifying an invoice amount to avoid VAT.
- Deliberately or dishonestly failing to establish appropriate arrangements for overseas workers to meet local tax and social security requirements.
3.4 Responsibilities
Every member of staff and associated person who acts on behalf of the University is responsible for ensuring that they read, understand and comply at all times with this Policy and all relevant policies and processes, and guard against tax evasion.
The Registrar is responsible for ensuring that this Policy is implemented and maintained, that appropriate explanatory guidance is provided and that any suspected instances of tax evasion and/or facilitation of tax evasion are investigated appropriately.
Heads of Division, Heads of Department (including Faculty Board Chairs), and Heads of University Services (UAS and GLAM) are responsible for ensuring that staff within their divisions, departments or sections (as appropriate), affected students, and other associated persons are made aware of this Policy and associated explanatory guidance.
The Boards of Directors of majority and wholly owned subsidiary companies of the University are responsible for ensuring that this Policy, or an alternate Policy that is approved by Council’s General Purposes Committee, is implemented and maintained within those companies, and that staff and other associated persons are made aware of the Policy and associated explanatory guidance.
3.5 Third parties
The University can be prosecuted for failing to prevent the facilitation of tax evasion by an associated person. These include:
- an employee, acting in the course of their work; or
- an agent, acting in their capacity as an agent; or
- any person who performs services for or on behalf of a relevant body in their capacity of performing a service.
This definition includes contractors, consultants and Joint Venture partners.
The University expects any third party acting for or providing services to the University to demonstrate commitment to the Criminal Finances Act, and to take appropriate measures and action should it discover any tax evasion. Where appropriate, the University will include contractual obligations in respect of adherence to this Policy in its agreements with third parties.
Tax evasion risk should be regularly assessed as a specific part of the wider risk assessment and management performed by divisions, departments and committees. Significant transactions – those that are of high value, or high risk, or high profile – should be subject to a specific risk assessment. High risk transactions are those where there is a significantly increased risk of tax evasion due to the nature of the transaction, the third party, territory, opportunity or sector. Proportionate preventative and detective controls should be identified and implemented, together with regular reviews to determine their efficacy.
This Policy interacts and overlaps with a number of other University policies and procedures:
- Financial Regulations and supporting Financial Processes
- HR procedures
- Anti-Fraud Policy and Anti-Bribery Policy
- Policy on Conflict of Interest
- Overseas Working Policy
- Gifts and Hospitality Policy
- Code of Practice and Procedure on Academic Integrity in Research
- Public Interest Disclosure (whistle-blowing) Code of Practice
- Risk management framework
- University of Oxford Tax Strategy
This Policy also takes account of the University’s wider legislative obligations, specifically HMRC tax legislation and the Criminal Finances Act 2017.
Individuals who reasonably suspect the occurrence of tax evasion or the facilitation of tax evasion in the context of the University’s activities should report their concerns as soon as possible to the Director of Finance, the Registrar or to compliance@admin.ox.ac.uk, providing a brief description of the alleged irregularity, and any evidence that supports the allegations or irregularity and identifies the individual or individuals responsible.
Any report will be treated as a disclosure under the University’s Public Interest Disclosure (whistle-blowing) Code of Practice and it will, therefore, be brought to the attention of the Registrar who will decide on the procedure to be adopted and determine whether there is a case to answer. Subjecting people who have reported reasonably-held concerns or suspicions to any detriment will be regarded as a disciplinary issue, as will abuse of process by making malicious allegations.
If you are unsure about whether a particular act constitutes tax evasion or foreign tax evasion, you can discuss it with your manager. You should note that the corporate offence is only committed where deliberate and dishonest action is taken to facilitate tax evasion. However, a deliberate failure to report suspected tax evasion or ignoring suspicious activity could amount to criminal facilitation of tax evasion.
