The leak of over 13m ''Paradise Papers' to the German newspaper Süddeutsche Zeitung (which also obtained the Panama Papers last year) has brought tax avoidance, tax evasion and the offshore industry in general back to the front page. The leaked confidential information will be drip-fed through the press across this week. A key theme is the lack of transparency around offshore tax arrangements which will sharpen the focus on the new corporate criminal offence of failure to prevent the facilitation of tax evasion, as well as other failure to prevent and tax-related offences. The new corporate criminal offence, which came into force on 30 September 2017, requires relevant corporates to have reasonable procedures to prevent the facilitation of tax evasion by those who act for on their behalf, and has global reach.
Reputational risk is one of the main concerns today, but wider business risks are likely to be engaged as the week progresses - corporate crime, sanctions and money laundering.