Regulatory payments by banks and corporates

The government has proposed offences for corporates who fail to implement adequate measures to prevent the facilitation of financial crimes.

Such offences are part of a wider trend of rules focusing on ensuring the 'good' behaviour of corporates. Corporates will need to be prepared to face potentially the kind of scrutiny banks have previously faced and to consider the tax treatment of the costs involved. That includes not just fines or compensation, but the expense of investigations and costs incurred on behalf of employees accused of misconduct. The tax treatment may depend on properly identifying the costs and managing proceedings.

This article was published in the 24 June 2016 issue of Tax Journal.

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