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Genuine Corporate hospitality still allowed - Businesses offered guidance on the Bribery Act
11th May, 2011
Smailes Goldie Chartered Accountants, in Hull and Barton-upon-Humber, are advising businesses to take time to understand how the Bribery Act will affect them.
With the Bribery Act set to come into force on 1st July 2011, the government has issued some guidance to ensure that businesses can comply with the new regulations. However, those that remain unsure should seek legal clarification.
Mark Sharpley, Partner at Smailes Goldie and Chairman of the UK200 Legal Group, said:
"Although the Act makes unlawful bribery or attempted bribery by any employee of a business, and makes it an offence to permit such conduct, firms may escape punishment if they can prove they had adequate preventive measures in place.
"Anyone convicted of bribery will now face a maximum penalty of 10 years imprisonment, as well as an unlimited fine.
"However, genuine corporate hospitality or similar reasonable business expenditure will still be permitted, with the guidelines outlining the kinds of promotional spending that will be allowed."
The new guidelines should reassure businesses, especially smaller ones, that they do not need to spend vast amounts on compliance measures at a time when economic conditions are still difficult.
