Crimes Legislation for False Accounting
Crimes Legislation for False Accounting: It looks to be a busy year for company directors. Stay current with our latest update on the new criminal penalties that may apply to you.
See below for the complete transcript of this episode -
The government recently passed the Crimes Legislation Amendment (Proceeds of Crime and Other Measures) Bill.
Among a range of measures are two new criminal offences for false accounting which apply from 1 March 2016:
Offence 1 is intentional false dealing with accounting documents; and
Offence 2 is reckless false dealing with accounting documents.
The first offence applies to companies or individuals that make, alter, destroy or conceal an accounting document or fail to make an accounting document that the person is under a duty to make, with the intention that the conduct would facilitate, conceal or disguise the receiving or giving of a benefit that is not legitimately due or a loss that is not legitimately incurred.
The second applies to companies and individuals that recklessly do so.
It’s important to note that it won’t be necessary to establish actual payment or receipt of bribes to prosecute offences under these provisions successfully.
Penalties for breaches of the new offences are significant: Individual offenders face fines of up to $1.8 million and possible imprisonment, while fines for companies start at $18 million.
The tougher regulatory regime is designed to strengthen Australia’s OECD obligations and align Australia with other jurisdictions such as the United States. If the American model is emulated, directors and executives who may have previously overlooked certain practices will become targets.
We suggest that now is a good time to review your accounting practices and implement new protocols where necessary.
If you like to discuss this, please give us a call at You Legal we love to hear from you.
What Should I Do Next?
Contact us if you would like further legal advice on Director Obligations. Our lawyers at You Legal will be happy to assist you in whatever way we can.
* This blog is for general guidance only. Legal advice should be sought before taking action in relation to any specific issues.