Clause 20 - penalties
Child Trust Funds Bill
10:45 am
Mr David Laws (Yeovil, Liberal Democrat)
We now move on to a slightly more mundane subject: the penalties that can be imposed by the Inland Revenue in respect of fraudulent or negligent claims.
Amendment No. 156, which the Liberal Democrats have tabled, and amendment No. 186, which the hon. Member for Tatton will discuss, deal with subsection (1), which allows the Inland Revenue to impose a penalty of £300 on anyone who fraudulently applies to open, makes a withdrawal from or secures the opening by the Inland Revenue of a CTF account. Subsection (2), which we must also hold in our minds when we consider the issue addressed in amendment No. 156—and to some extent amendment No.186—also allows the Inland Revenue to impose a penalty not greater than £3,000 on
''(a) an account provider who fraudulently or negligently makes an incorrect statement or declaration in connection with a claim under section 8 or 9 or regulations under section 10 or 13, and
(b) any person who fraudulently or negligently provides incorrect information in response to a requirement imposed by or under regulations under section 15.''
Is the £300 penalty in subsection (1) an adequate deterrent? Is it proportionate compared with the penalty in subsection (2)? In tabling amendment No. 156 I was concerned that the £300 penalty seems low compared with the potential to defraud a CTF account of up to £500—the sum involved if the account is being opened with the larger Government contribution. There is an element of tough liberalism here, as my hon. Friend the Member for Winchester (Mr. Oaten) would say.