Tax Evasion Policy
It is University policy to conduct all University business in an honest and ethical manner. The University takes a zero-tolerance approach to tax evasion and the facilitation of tax evasion, whether under English law or under the law of any foreign country.
What is my role?
It is the responsibility of all members of staff and other parties connected with the University to comply with this policy and to report potential tax evasion or the facilitation of tax evasion.
The policy can be read in full here.
How do I report tax evasion?
If you believe that tax evasion or the facilitation of tax evasion may have taken place at the University, please contact taxation@sussex.ac.uk promptly so that it can be investigated and recorded. You may be asked to fill in a Financial Irregularities Initial Report [DOCX 29.90KB]
What is Tax evasion?
The University’s policy defines tax evasion, and the facilitation of tax evasion as follows:
- 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.
- 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.
- 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.
Potential risks: “Red Flags”
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. If you encounter any of these red flags while working for us, you must report them promptly to your manager or in accordance with our Raising Concerns Process.
False Statements by a third party
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.
Third party avoiding tax
You become aware, in the course of your work, 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
- working for the University as an employee asks to be treated as a self-employed contractor, but without any material changes to their working conditions.
Suspicious requests by a third party
- Supplier 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
- Supplier or other subcontractor is paid gross when they should have been paid net, under a scheme such as the Construction Industry Scheme
- A payment is made to a country or geographic location different from where the third party resides or conducts business
- Supplier 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
- Supplier requests or requires the use of an agent, intermediary, consultant, distributor or supplier that is not typically used by or known to us
- Supplier requests that a payment is classed as a donation despite receiving goods or services in return
- Supplier sends an invoice for a commission or fee payment that appears too large or too small, given the service stated to have been provided
- Customer requests that their invoice is addressed to a different entity, where we did not provide services to such entity directly
- Customer 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.
Suspicious activity
- You receive an invoice from a third party that appears to be non-standard or customised
- Research services acquired from an overseas third party are classified as outside the scope of VAT in order to evade VAT reverse charge.
- Goods are purchased using a University account but for the personal use of an individual and charitable VAT relief is claimed on the acquisition.
- Notifying an import courier that goods qualify for import duty reliefs when they do not.
- Using or facilitating the use of research residue accounts for personal non-business purposes, thereby evading income tax.
- An employee who works substantially or wholly overseas and at face value does not appear to pay income tax or social security in the overseas territory
- Declaring that goods ordered are for use in medical or veterinary research, teaching, diagnosis when they are not