The Scottish Government treats tax and social security obligations seriously.
Organisations can exclude a bidder where they have established that the bidder has breached its tax or social security obligations. Organisations must determine on a case-by-case basis whether a particular piece of evidence (which falls short of a judicial or administrative decision) is sufficient to demonstrate “appropriate means”.
Examples of evidence which may demonstrate breaches in tax or social security obligations, on which organisations can seek clarification from bidders, could include:
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Credit references |
i.e. details of any outstanding tax debt |
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Company accounts |
depending on the size of the tax debt the bidder may be obliged to include this in their accounts |
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OONC |
an admission by a bidder to an Occasion of Non-Compliance (OONC) or |
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Avoidance scheme failure |
an admission by a bidder of the failure of an avoidance scheme which they were involved in and was, or should have been, notified under Disclosure of Tax Avoidance Scheme (DOTAS) |
Where a bidder admits to a breach of its tax or social security obligations, which did not involve a judicial or administrative decision, the organisation can request further details and any mitigating factors, from the bidder. This is to further understand the nature of the breach.
.This could include:
Self-Cleansing – Tax and Social Security Contributions
Where the bidder can provide evidence that it has fulfilled its obligations by paying the amount due, it must not be excluded from the procurement exercise on this basis alone. This also applies where it has entered into a binding agreement with the intention of paying taxes or social security contributions, including any interest due. Evidence of this could include:
Additionally, where excluding a bidder would be disproportionate, you may decide not to exclude them.
For example this could be because a minor amount of tax or social security contributions are owed, or a bidder has not had a sufficient time to pay the amount owed.
You must take a balanced view when deciding not to exclude on this basis. This could include considering the bidder’s overall tax and social security obligations and the overall risk to contract delivery.
For example there may be instances where an apparent "minor amount" may significantly affect the liquidity of the bidder and its ability to perform the contract, or where sufficient time did exist for the outstanding amounts to be paid.
The Scottish Government regards blacklisting or the compiling of a blacklist as totally unacceptable.
Blacklisting refers to the practice of systematically denying individuals employment, who would otherwise be able to be employed. Blacklisting is done on the basis of information, accurate or not, held in some type of database.
The Employment Relations Act 1999 (Blacklists) Regulations 2010 [6] provide rights for individuals if blacklisting results in refusal of employment, detriment, dismissal or redundancy.
Any bidder which has been found to have breached, or who have admitted to breaching, these Regulations must be excluded from the procurement process for a period of three years. This is unless the bidder can demonstrate that it has taken appropriate remedial steps to your satisfaction.
Exclusion grounds must be applied where a bidder has been convicted in the last five years by final judgment of one of the criminal offences contained in the regulations. These offences are:
Lifecycle Impact Mapping focuses on social and environmental impact rather than cost. It helps the user identify and assess impacts.
Please note: Life cycle impact mapping can be used alongside life cycle costing as part of the procurement process.