Clause 24 - Introductory
Finance Bill
10:30 am
Mr John Healey (Economic Secretary, HM Treasury; Wentworth, Labour)
I am grateful to the hon. Member for Eddisbury for his general approach in saying that the reform is sensible. Both he and the hon. Member for North Norfolk raised the question, which they had been briefed on, of whether the measure conforms with human rights legislation. Our view, and the view of parliamentary counsel, is that it does. Cases of evasion through dishonesty, which are dealt with under clause 25, are classified as criminal charges under the European convention on human rights. That classification entitles the taxpayer to the safeguards provided for in article 6(2) and (3) of the convention. It does not make the case a criminal case in UK law, however, and the Police and Criminal Evidence Act 1984 does not automatically apply. The procedures to be adopted when investigating cases under clause 25 are being modelled on those used in the VAT civil evasion penalty regime, which have been found by the independent VAT and duties tribunal to be human rights compliant.
On safeguards in what it is important to remember is a civil, not a criminal regime, under our set of proposals, when liability to penalty is first established, except when over £10,000 in duty has been undeclared, action will always be confined to a warning letter advising of the contravention and informing the taxpayer that future performance will be formally monitored over two years. Should similar contraventions occur during that period, a penalty may be imposed. As a further safeguard, the decision to issue a warning letter can be appealed about to a tribunal.
I hope that members of the Committee will accept the clause.
Question put and agreed to.
Clause 24 ordered to stand part of the Bill.