Clause 29 - Incorrect statements etc.
Tax Credits Bill
5:45 pm
Mr James Clappison (Hertsmere, Conservative)
We now move from overpayments to the penalty regime, which is constructed between clauses 29 and 33. Clause 29 provides for penalties for persons who make incorrect statements in applications for tax credits. A person who fraudulently or negligently makes incorrect statements or declarations may be subject to a penalty of up to £3,000. In many respects, that mirrors provisions already in place in the Tax Credits Act 1999.
The purpose of the amendments and new clause 10 is to separate fraudulent statements from negligent statements and make fraudulent statements subject to a more serious regime. We had a short debate about negligence earlier. I do not think that there is an important difference between—