Clause 36 - Appeals
Tax Credits Bill
3:45 pm
Ms Dawn Primarolo (Paymaster General, HM Treasury; Bristol South, Labour)
I can politely refer to this as a consequential amendment to clause 27. The hon. Gentleman withdrew amendment No. 68, and I suppose that he will withdraw today's amendment, but I shall not refer to that because he has been gracious in his comments.
The hon. Gentleman asked for clarification on the statement made by my right hon. Friend the Financial Secretary in Standing Committee on Tuesday. I shall put this on the record, but it may be helpful if I write to the hon. Gentleman as well given his point about ensuring clarity. My right hon. Friend's statement was not incorrect, and I shall explain why. The discussion was about penalties for failing to provide information, which are set out clause 30(2), and the initial penalty to which he referred is set out in clause 30(2)(a).
Paragraph 3(1) to schedule 2 makes it clear that the board must commence proceedings for a penalty to be imposed under clause 30(2)(a). In other words, it must ask the commissioners whether they are prepared to impose such a penalty. Only the commissioners can impose it. The board cannot impose a penalty for continued failure to provide information under clause 30(2)(b) unless, and until, the commission has imposed an initial penalty under clause 30(2)(a). The board's action is consequent on the commissioners' starting the process. As the provision references across the Bill, it would help not only if I put that explanation on the record, but if I wrote to members of the Committee.
On appeals and overpayment, I want to double-check that there is not a semantic difference. In an assessment on overpayment, the claimant can appeal against the decision on entitlement from which the overpayment arises, so the difference is one of semantics. It is decisions on entitlement that will produce either the underpayment or the overpayment.