Clause 29 - Incorrect statements etc.
Tax Credits Bill
6:00 pm
Mr Paul Boateng (Financial Secretary, HM Treasury; Brent South, Labour)
Through the amendments, he hon. Member for Hertsmere wants to remove from clause 29 the reference to fraudulent behaviour. He would prefer that such behaviour were dealt with as a new
criminal offence under his proposed new clause. I agree with the hon. Gentleman—as I am sure do all members of the Committee—that we want to ensure that the compliance framework for the new tax credit is effective against those who may attempt to abuse the system. Fraud is undoubtedly such an abuse and it is our objective to prevent it, while not deterring people who are genuine from claiming their entitlement.
I want to explain how we propose to take such action. In the light of our intentions, the hon. Gentleman's proposed new clause 10 is redundant. Nothing would be caught under it that would not already be caught under the new criminal offence introduced under clause 33. The Bill already makes clear provision to counter criminal abuse of the system, and the criminal offence that the hon. Gentleman wants to introduce would not add anything to that.
We are always open to suggestions about how the law may be made more effective and, as the hon. Gentleman knows from previous exchanges with me in Committee, we are open always to suggestions on how to improve the focus of criminal justice measures, particularly as they relate to fraud of the public purse. We do not believe that new clause 10 would achieve anything that is not already achieved under clause 33. If he has a contrary view, can he establish any defect or failing under clause 33? I am not sure whether it is his intention that civil penalties should not be available in cases of fraudulent behaviour. If so, amendment No. 24—and amendment No. 69, which we shall discuss when we reach the next group of amendments—would remove ''fraudulently'' and ''negligently'' from the clause. That would mean that we do not have a civil penalty either, but clearly that is not his intention.