Clause 28 - Exceptions from section 26
Finance Bill
11:00 am
Mr Stephen O'Brien (Eddisbury, Conservative)
The clause enables Customs to switch from a company to a director a VAT liability arising from a VAT evasion, if it appears to it that the liability arose from the director's dishonesty. The Institute of Direct Taxation says that, although clauses 33 to 36 gave the VAT tribunal the right of appeal, it is for the director to prove that Customs is wrong, not for Customs to prove otherwise. Customs must prove that there was evasion by the company, but not that the director was personally dishonest. The institute asks why, as this appears to be a criminal penalty under
human rights law, Customs should not also have to prove that the director has acted dishonestly.
I have put on the record the representation that has been made to me. We have not chosen to encompass the argument in an amendment. I look forward to the Minister's response.