From 1 April 2013, buyers and suppliers involved in Central Government regulated procurements will need to address the issue of self-certification concerning instances of tax non-compliance.
In more recognisable terms, the Government is implementing its policy of trying to exclude from public procurement those suppliers who have indulged in the dark arts of tax avoidance.
PQQ’s and the selection criteria within other procedures will be required to include a pass/fail criterion against which buyers will self-certify.
Given that there is the possibility that an Authority may accept a supplier’s explanation around any “instance of non-compliance” both buyers and suppliers will need to understand the scope of what are to be regarded as ‘aggravating’ and ‘mitigating’ factors.
The regime of sanctions is still evolving, but a key element of the policy is that tax non-compliance measures will feature in resultant contracts – and the duty of disclosure is ongoing for the life of the contract.
The Procurement Policy Information Note attached gives more detail.