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06 February 2015 at 06:49 BST

Companies still vulnerable to tax data leaks, warns A&O

Three months after the tax affairs of various PwC clients were leaked to the newspapers, Allen & Overy is warning that the same thing could happen again.

Boris Stroujko

Law firm Allen & Overy is warning companies not to get into the same position as Heinz, Dyson, JP Morgan and many other companies did in November when details of their confidential tax arrangements were made public in the media. 

Monitoring emails

Many companies have not prepared the way to monitor their employees' emails if they suspect them of leaking confidential information - and they are putting themselves at risk, says Catherine Di Lorenzo in Allen & Overy Luxembourg, from where the leaks took place. She said: 'Compliance with data protection rules costs just one or two days' work. But it is simply an element of corporate housekeeping everybody has neglected for a long time.' If employers do seek to monitor emails without taking the proper steps first they are at risk of exposing themselves to criminal liability. Many companies have bases, and even their HQs, in Luxembourg.

Outsourcing

Her colleague, Gilles Dall'Agnol, commented on the Luxembourg leaks ('LuxLeaks'), saying: 'I think that LuxLeaks, for all its negative consequences, has had the effect of increasing awareness about the topic of data security.' He expects companies to take various protective measures in future - including strengthening the role of the chief information officer and becoming less keen to outsource data secruity responsibilities. Source: Luxemburger Wort

 
   
 
 
 

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