1. POLICY STATEMENT
1.1 It is our policy to conduct all of our business in an honest and ethical manner. We take a zero-
tolerance approach to facilitation of tax evasion, whether under UK law or under the law of any
foreign country.
1.2 We are committed to acting professionally, fairly and with integrity in all our business
dealings and relationships wherever we operate and implementing and enforcing effective
systems to counter tax evasion facilitation.
1.3 We will uphold all laws relevant to countering tax evasion in all the jurisdictions in which we
operate, including the Criminal Finances Act 2017.
2. ABOUT THIS POLICY
2.1 The purpose of this policy is to:
a) set out our responsibilities, and of those working for us, in observing and upholding our
position on preventing the criminal facilitation of tax evasion; and
b) provide information and guidance to those working for us on how to recognise and avoid tax
evasion.
2.2 As an employer, if we fail to prevent our employees, workers, agents, or service providers
facilitating tax evasion, we can face criminal sanctions including an unlimited fine, as well as
exclusion from tendering for public contracts and damage to our reputation. We therefore take
our legal responsibilities seriously.
2.3 We have identified that there are particular risks for our business, as set out below. To address
those risks, we have implemented a number organisational and technical measures to highlight,
investigate and effectively manage them as relevant.
2.4 In this policy, third party means any individual or organisation you come into contact with
during the course of your work for us, and includes actual and potential clients, customers,
suppliers, distributors, business contacts, agents, advisers, and government and public bodies,
including their advisers, representatives and officials, politicians and political parties.
2.5 This policy does not form part of any employee’s or worker’s contract of employment or
engagement and we may amend it at any time.
3. WHO MUST COMPLY WITH THIS POLICY?
3.1 This policy applies to all persons working for us or any Group Company or on our behalf in
any capacity, including employees at all levels, 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 us,
wherever located.
4. WHO IS RESPONSIBLE FOR THIS POLICY?
4.1 The board of directors has overall responsibility for ensuring this policy complies with our
legal and ethical obligations, and that all those under our control comply with it.
4.2 The compliance manager has primary and day-to-day responsibility for implementing this
policy, monitoring its use and effectiveness, dealing with any queries about it, and auditing
internal control systems and procedures to ensure they are effective in preventing the facilitation
of tax evasion.
4.3 Management at all levels are responsible for ensuring those reporting to them understand
and comply with this policy and are given adequate and regular training on it.
4.4 You are invited to comment on this policy and suggest ways in which it might be improved.
Comments, suggestions and queries should be addressed to the compliance manager.
5. WHAT IS TAX EVASION FACILITATION?
5.1 For the purposes of this policy:
a) Tax evasion means the offence of cheating the public revenue or fraudulently evading UK
tax, and is a criminal offence. The offence requires an element of fraud, which means there must
be deliberate action, or omission with dishonest intent;
b) Foreign tax evasion means evading tax in a foreign country, provided that conduct is an
offence in that country and would be a criminal offence if committed in the UK. As with tax
evasion, the element of fraud means there must be deliberate action, or omission with dishonest
intent; and
c) Tax evasion facilitation means being knowingly concerned in, or taking steps with a view to,
the fraudulent evasion of tax (whether UK tax or tax in a foreign country) by another person, or
aiding, abetting, counselling or procuring the commission of that offence. Tax evasion
facilitation is a criminal offence, where it is done deliberately and dishonestly.
5.2 Under the Criminal Finances Act 2017, a separate criminal offence is automatically
committed by a corporate entity or partnership where the tax evasion is facilitated by a person
acting in the capacity of an “associated person” to that body. For the offence to be made out, the
associated person must deliberately and dishonestly take action to facilitate the tax evasion by
the taxpayer. If the associated person accidentally, ignorantly, or negligently facilitates the tax
evasion, then the corporate offence will not have been committed. The company does not have to
have deliberately or dishonestly facilitated the tax evasion itself; the fact that the associated
person has done so creates the liability for the company.
5.3 Tax evasion is not the same as tax avoidance or tax planning. Tax evasion involves deliberate
and dishonest conduct. Tax avoidance is not illegal and involves taking steps, within the law, to
minimise tax payable (or maximise tax reliefs).
5.4 In this policy, all references to tax include national insurance contributions (and their
equivalents in any non-UK jurisdiction).
6. WHAT YOU MUST NOT DO
6.1 It is not acceptable for you (or someone on your behalf) to:
a) engage in any form of facilitating tax evasion or foreign tax evasion;
b) aid, abet, counsel, or procure the commission of a tax evasion offence or foreign tax evasion
offence by another person;
c) fail to promptly report any request or demand from any third party to facilitate the fraudulent
evasion of tax (whether UK tax or tax in a foreign country), or any suspected fraudulent evasion
of tax (whether UK tax or tax in a foreign country) by another person, in accordance with this
policy;
d) engage in any other activity that might lead to a breach of this policy; or
e) threaten or retaliate against another individual who has refused to commit a tax evasion
offence or a foreign tax evasion offence or who has raised concerns under this policy.
7. YOUR RESPONSIBILITIES
7.1 You must ensure that you read, understand, and comply with this policy.
7.2 The prevention, detection and reporting of tax evasion and foreign tax evasion are the
responsibility of all those working for us or under our control. You are required to avoid any
activity that might lead to, or suggest, a breach of this policy.
7.3 You must notify the compliance manager as soon as possible if you believe or suspect that a
conflict with this policy has occurred, or may occur in the future. For example, if an employee or
supplier asks to be paid into an offshore bank account, without good reason, or a supplier asks to
be paid in cash, indicating that this will mean the payment is not subject to VAT. Further “red
flags” that may indicate potential tax evasion or foreign tax evasion are set out in Clause 12.
8. HOW TO RAISE A CONCERN
8.1 You are encouraged to raise concerns about any issue or suspicion of tax evasion or foreign
tax evasion at the earliest possible stage.
8.2 If you become aware of any fraudulent evasion of tax (whether UK tax or tax in a foreign
country) by another person in the course of your work, or you are asked to assist another person
in their fraudulent evasion of tax (whether directly or indirectly), or if you believe or suspect that
any fraudulent evasion of tax has occurred or may occur, whether in respect to UK tax or tax in a
foreign country, you must notify the Operative Care Team or report it in accordance with our
Whistleblowing Policy as soon as possible.
8.3 If you are unsure about whether a particular act constitutes tax evasion or foreign tax evasion,
raise it with your manager as soon as possible. You should note that the corporate offence is only
committed where you deliberately and dishonestly take action to facilitate the tax evasion or
foreign tax evasion. If you do not take any such action, then the offence will not be made out.
However, a deliberate failure to report suspected tax evasion or foreign tax evasion, or “turning a
blind eye” to suspicious activity could amount to criminal facilitation of tax evasion.
9. PROTECTION
9.1 Individuals who raise concerns or report another’s wrongdoing, are sometimes worried about
possible repercussions. We aim to encourage openness and will support anyone who raises
genuine concerns in good faith under this policy, even if they turn out to be mistaken.
9.2 We are committed to ensuring no one suffers any detrimental treatment as a result of:
a) refusing to take part in, be concerned in, or facilitate tax evasion or foreign tax evasion by
another person;
b) refusing to aid, abet, counsel, or procure the commission of a tax evasion offence or a foreign
tax evasion offence by another person; or
c) reporting in good faith their suspicion that an actual or potential tax evasion offence or
foreign tax evasion offence has taken place, or may take place in the future.
9.3 Detrimental treatment includes dismissal, disciplinary action, threats, or other unfavourable
treatment connected with raising a concern. If you believe that you have suffered any such
treatment, you should inform the compliance manager immediately. If the matter is not
remedied, and you are an employee, you should raise it formally using our Grievance Procedure,
which can be found in your employment or engagement contract.
10. TRAINING AND COMMUNICATION
10.1 Training on this policy forms part of the induction process for all individuals who work for
us, and regular training will be provided as necessary. Such training may form part of wider
financial crime detection and prevention training.
10.2 Our zero-tolerance approach to tax evasion and foreign tax evasion must be communicated
to all suppliers, contractors and business partners at the outset of our business relationship with
them and as appropriate after that.
11. BREACHES OF THIS POLICY
11.1 Any employee who breaches this policy will face disciplinary action, which could result in
dismissal for misconduct or gross misconduct.
11.2 We may terminate our relationship with other individuals and organisations working on our
behalf if they breach this policy.
12. RISK SCENARIOS: “RED FLAGS”
12.1 The following is a list of possible red flags that may arise during the course of you working for
us and which may raise concerns related to tax evasion or foreign tax evasion. The list is not
intended to be exhaustive and is for illustrative purposes only. 12.2 If you encounter any of these
red flags whilst providing services to us, please report them promptly to a representative of the
Management Team by email to compliance@h2ologistics.co.uk: a) you become aware, in the
course of your work, that a third party has made or intends to make a false statement relating to
tax, has failed to disclose income or gains to, or to register with, HMRC (or the equivalent
authority in any relevant non-UK jurisdiction), has delivered or intends to deliver a false
document relating to tax, or has set up or intends to set up a structure to try to hide income, gains
or assets from a tax authority; b) you become aware, in the course of providing services, that a
third party has deliberately failed to register for VAT (or the equivalent tax in any relevant non-
UK jurisdiction) or failed to account for VAT; c) a third-party requests payment in cash and/or
refuses to sign a formal commission or fee agreement, or to provide an invoice or receipt for a
payment made; d) you become aware, in the course of your work, that a third party working for
us as an employee asks to be treated as a self-employed contractor, but without any material
changes to their working conditions; e) a supplier or other subcontractor is paid gross when
they should have been paid net, under a scheme such as the Construction Industry Scheme; f) a
third-party requests that payment is made to a country or geographic location different from
where the third party resides or conducts business; g) a third party to whom we have provided
services requests that their invoice is addressed to a different entity, where we did not provide
services to such entity directly; h) a third party to whom we have provided services asks us to
change the description of services rendered on an invoice in a way that seems designed to
obscure the nature of the services provided; i) you receive an invoice from a third party that
appears to be non-standard or customised; j) a third party insists on the use of side letters or
refuses to put terms agreed in writing or asks for contracts or other documentation to be
backdated; k) you notice that we have been invoiced for a commission or fee payment that
appears too large or too small, given the service stated to have been provided; and l) a third
party requests or requires the use of an agent, intermediary, consultant, distributor or supplier
that is not typically used by or known to us.