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Insight

Tax compliance to be considered as part of public procurements

Paul Barton
19/02/2013
The Government has announced details of its plans to use the public procurement process to deter tax avoidance and evasion.Under a new policy, intended to apply from 1 April 2013, bidders for The Government has announced details of its plans to use the public procurement process to deter tax avoidance and evasion.

Under a new policy, intended to apply from 1 April 2013, bidders for contracts to be awarded by central government (that exceed the thresholds for the application of the public procurement rules) will be required to self-certify whether they have had an "occasion of non-compliance" with the tax rules. A new "pass/fail" question will be developed and will be incorporated into the standard core pre-qualification questionnaire. The answer to this question will be taken into account in the selection stage of the procurement procedure.

In addition, all contracts must include a clause requiring the supplier to keep the contracting authority notified of changes in relation to tax compliance and providing remedies in the event of non-compliance.

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