Government Suppliers – are you ready for PPN 04/13 disclosure on Tax Compliance?

If you are bidding for work from central Government Departments from 1 April 2013 onwards you will need to ensure you are set up to deal with the effect of this PPN and you will also need to watch out for the further PPN promised in April which will give guidance on how Departments should assess your responses.

The requirements have evolved during the consultation process and so it is worthwhile summarising the final position:

1. PPN 04/13 sets out the questions concerning tax compliance which Departments

    must

ask in all PQQs from 1 April 2013 onwards.

2. There will be no initial retrospective application (except to the extent that the relevant date for disclosure is any tax return submitted on or after 1 October 2012).

3. As time moves on the retrospective effect will be as from 1 April 2013. With effect from 31 March 2019 a maximum 6 year retrospection will apply.

4. The application of this requirement will be to all central Government contracts with a value of £5m or more and which are subject to EU procurement rules.

5. The requirement applies to all kinds of bidding entities. In the case of JV’s or consortia the answers to the questions must cover all members. For partnerships, the answers will cover the partnership itself but not partners in their personal capacity. For companies who are members of a group, the answers will only cover the company itself and not other group members.

The further PPN due sometime this month is likely to give guidance to Departments on how they should regard mitigation material supplied by bidders who have to answer “yes” to the questions on criminal/ civil offences and/or incorrect Tax Returns.

Watch this space for a review of that PPN when it is issued.

The full text of PPN 04/13 is here:

http://tinyurl.com/bvzlpjq

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