Promoting tax compliance through procurement

Posted by Cathrine Bryant on
On 25 July 2013, the Cabinet Office published a Procurement Policy Note ("PPN") providing guidance on the policy which has been in effect since 1 April 2013.

The policy applies to all suppliers bidding for Central Government contracts of £5 million or more.  Other contracting authorities may choose to apply the policy if they wish to procurements over £5 million.  The policy also applies under the Defence and Security Public Contracts Regulations 2011 as well as the Public Contracts Regulations 2006.

All HMRC taxes are covered by the policy as well as their foreign equivalents.  The point here is that foreign bidders will be required to self-certify too so as not to put UK suppliers at a disadvantage. 

In relation to framework agreements:

  • the policy does not apply to frameworks awarded before 1 April 2013;
  • the policy does not apply to extensions of contracts awarded prior to 1 April 2013;
  • the policy will only apply in respect of multi-supplier contracts where any one particular call-off contract or agreements in respect of goods or services under the framework will exceed £5 million.

Further guidance has also been provided on the selection stage questions to ask and the evaluation procedure in relation to such questions.


About the Author

Cathy is a partner in the firm's corporate team. As a dual qualified lawyer Cathy brings a depth of experience to her role as an adviser on tax matters in corporate transactions.

Cathrine Bryant
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029 2068 6198

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