Facilitation of Tax Evasion Policy
ABOUT VEOLIA
The Veolia group aims to become the benchmark company for ecological transformation. Present on five continents with nearly 218,000 employees, the Group designs and deploys useful and concrete solutions for water, waste and energy management that contribute to radically changing the situation. Through its three complementary activities, Veolia contributes to developing access to resources, preserving available resources and renewing them. In 2023, the Veolia group will serve 113 million inhabitants with drinking water and 103 million with sanitation, produce 42 terawatt hours of energy and recover 63 million tonnes of waste. Veolia Environnement (Paris Euronext: VIE) achieved consolidated revenue of 45.3 billion euros in 2023. www.veolia.com
POLICY STATEMENT
At Veolia it is our policy to conduct all of our business in an honest and ethical manner. Our Values outline the standards and behaviours that Veolia upholds as a company. By living our Values we can maintain the highest ethical standards in the conduct of our business affairs.
We take a zero-tolerance approach to tax evasion. This type of conduct is absolutely prohibited whether committed or facilitated by employees or anyone else acting on Veolia’s behalf.
The purpose of this particular policy is to:
- Set out our responsibilities, and the responsibilities of those working for us, in observing and upholding our position on the facilitation of tax evasion; and,
- Provide information and guidance to those working with us on how to recognise and deal with these tax evasion issues.
In this policy, associated person means employees, agents and other persons who perform services on behalf of the business, such as contractors, suppliers, agents and intermediaries[1].
In this policy, the third party means any individual or organisation you come into contact with during the course of your work that is not an associated person.
WHO IS COVERED BY THE POLICY?
All associated persons must strictly comply with this policy. It is important that you take time to read and comply with this policy.
CONSEQUENCES OF BREACH OF THIS POLICY
The UK’s Corporate Criminal Offence of the Failure to Prevent the Facilitation of Tax Evasion (‘CCO’) has been effective since 30 September 2017. The penalties under CCO include an unlimited financial penalty and/or ancillary orders such as confiscation orders or serious crime prevention orders. Non-compliance could result in a criminal investigation by Her Majesty’s Revenue and Customs (HMRC), with any prosecutions being brought by the Crown Prosecution Service (CPS). Any foreign tax offence under CCO will be investigated by the Serious Fraud Office (SFO) or National Crime Agency and prosecutions will be brought by either the SFO or CPS.
Aside from the implications of a prosecution, or resulting regulatory action, we could be excluded from tendering for all public contracts (i.e. any municipal or PFI bids) and face severe damage to our reputation. We, therefore, take our responsibilities in this area very seriously.
Breach of this policy will result in disciplinary action, which may lead to gross misconduct dismissal. Such a breach may also incur personal criminal liability. For further information concerning disciplinary action, please refer to our Disciplinary Policy and Procedure, available on VMS.
WHAT IS A TAX EVASION?
Fraudulent tax evasion is a crime and involves dishonest behaviour. A ‘person’ behaves dishonestly if they know (or turn a ‘blind eye’ to whether) they have a liability to pay tax but decide not to pay it/declare it. Dishonest behaviour may involve a person simply deciding not to declare the money they make. It may involve someone deliberately trying to hide the source of money, or even intentionally misrepresenting where the money came from.
Note that fraudulent tax evasion does not arise where a person makes a mistake or is careless. There needs to be a dishonest intent.
A ‘person’ as set out above could mean a company i.e. Veolia. Tax evasion by, or carried out on behalf of Veolia is absolutely prohibited.
WHAT IS THE FACILITATION OF TAX EVASION
CCO offences can only apply to Veolia when there has been ‘fraudulent tax evasion’ facilitated by an ‘associated person’ to Veolia, both as defined above.
The facilitation comprises being knowingly concerned in, or taking steps with a view to, the fraudulent tax evasion of another, as well as aiding, abetting, counselling or procuring another person’s offence of tax evasion. Note however that the associated person does not commit a tax evasion offence when they inadvertently, or even negligently, facilitate another’s tax evasion. There must be criminal intent and thus the facilitator is an ‘accomplice’.
Generic examples of the facilitation of tax evasion could include:
- Allowing waste to bypass a weighbridge on a landfill site.
- Misclassification of waste such that a lower rate of Landfill Tax is fraudulently paid.
- An employee in the Accounts Payable department knowingly processes invoices from a supplier showing a false VAT number.
- An employee in the Accounts Receivable team agrees to invoice a different/offshore customer entity (who did not receive the supply and obtains a VAT advantage from doing so).
HOW CAN THE FACILITATION ARISE?
It is likely that most instances of ‘facilitation’ will occur in exchange for an ‘inducement’ (a bribe), for example; cash, favour, gifts, hospitality. Further information concerning bribery is available within the Veolia UKI Anti Bribery and Corruption Policy and Procedure available on VMS.
Facilitation can also arise from ‘turning a blind eye’ to tax evasion, which may be linked to intimidation and/or threats.
YOUR RESPONSIBILITIES
You must ensure that you read, understand and comply with this policy.
The prevention, detection and reporting of either the facilitation of or actual tax evasion are the responsibility of all those working for us or under our control. All workers are required to avoid any activity that might lead to, or suggest,a breach of this policy.
You must notify your manager or the UK Head of Tax as soon as possible if you believe or suspect that a breach with this policy is occurring, has occurred, or may occur in the future.
You must complete any and all training (e-learning or otherwise) that is deemed to be a requirement for your Role.
We wish to reassure you that if you raise concerns with regards to the application of this policy you will not be subject to any disciplinary action or unfavourable treatment (or any threats relating to these). If you consider that you have been subject to such action or treatment, please contact HR by raising a Service Now: HR ticket.
HOW TO RAISE A CONCERN
If you are unsure whether a particular act constitutes tax evasion, or if you have any other tax-related queries, these should be raised with the UK Head of Tax. If the nature of the concern is such that you feel it cannot be raised internally, please visit the Veolia UKI Whistleblowing Policy and Procedure, which is available on VMS.
WHO IS RESPONSIBLE FOR THE POLICY?
The Executive Vice-President Northern Europe Zone has overall responsibility for ensuring this policy complies with our obligations, and that all those under our control comply with it. The UK Head of Tax has primary and day-to-day responsibility for implementing this policy, and for monitoring its use and effectiveness. Management at all levels is responsible for ensuring those reporting to them are made aware of and understand this policy and are given adequate and regular training on it.
MONITORING AND REVIEW
The Landfill Committee will monitor the effectiveness and review the implementation of this policy, regularly considering its suitability, adequacy and effectiveness.
This policy does not form part of any employee's contract of employment and it may be amended at any time.
[1] In other words all individuals working at all levels and grades, including senior managers, officers, directors, employees (whether permanent, fixed-term or temporary), consultants, contractors, trainees, seconded staff, homeworkers, casual workers and agency staff, volunteers, interns, agents, sponsors, or any other person associated with us, or any of our subsidiaries or their employees, wherever located (collectively referred to as workers in this policy).