Clause 24 - Introductory
Finance Bill
10:30 am
Mr Stephen O'Brien (Eddisbury, Conservative)
I thank the Minister for laying out a helpful introduction to clauses 24 to 41, which is appropriate as clause 24 is the introductory clause of part 3. That has helped to clarify several points, and it is particularly helpful to have a report on how the consultation process has been engaged.
As was described, the general background to the clause, and the others in part 3, is the wish to bring civil penalties for the evasion of Customs duties as an alternative to criminal sanctions. My party regards it as sensible to approve of a step that provides for civil penalties to increase compliance with the rules rather than leaving criminal sanctions as the only option. That sets the scene for where we are coming from in relation to clauses 24 to 41. Notwithstanding the welcome for the civil regime, the test that I have applied in preparation for the debate is how the clause shifts the burden on the taxpayer. Has the burden been shifted in such a way as to be onerous in a way that raises questions or cannot be sustained? We have tested the possible fairness or the burden of the provision.
The Institute of Chartered Accountants in England and Wales is well aware of the problems faced by Customs and Excise in the management and control of certain movements of goods, and it understands the logic behind the introduction of the provisions. It is concerned about the way in which the clauses have been drafted and about whether the proposals meet the requirements of human rights legislation. To that end, we need to explore some of the issues. I note that the frontispiece of the Bill states:
''Mr. Chancellor of the Exchequer has made the following statement under . . . the Human Rights Act 1998:
In my view the provisions of the Finance Bill are compatible with the Convention rights.''
Clearly, that is an important and serious statement. Parliament has every right to rely on it—that is how it is intended.
The institute raised the matter as a potential issue and we have focused some of our concerns on it. I hope that during the debate on this and following clauses we can establish whether the institute's concerns are genuinely well founded. The Minister might need to reflect on a number of points.