Clause 28 - Exceptions from section 26
Finance Bill
11:00 am
Mr John Healey (Economic Secretary, HM Treasury; Wentworth, Labour)
As the hon. Gentleman has made clear, the clause provides for a civil evasion penalty to be levied against a director or other relevant officer of a body corporate liable for a penalty, when the conduct giving rise to the penalty is attributable to that individual's dishonesty. I should tell the hon. Gentleman and the Institute of Indirect Taxation that the proof rests with Customs, not with the director.
Allowing penalties to be assessed against dishonest directors or officers of a company ensures that those who benefit personally from an evasion for which they are directly responsible can be targeted. The provision mirrors arrangements that are already applied successfully in the VAT civil evasion penalty regime. On that basis, I commend the clause to the Committee.
Question put and agreed to.
Clause 28 ordered to stand part of the Bill.