VAT: Evasion

Debate between Lord Bates and Lord Lucas

Monday 20th November 2017 Lords Chamber

[Lord Lucas]

To ask Her Majesty’s Government what progress Her Majesty’s Revenue and Customs have made in closing down VAT evasion by overseas sellers trading in the United Kingdom through online marketplaces; and what remains to be done.

[The Minister of State, Department for International Development (Lord Bates) (Con)]

My Lords, the Government recognise that this issue has a significant impact in preventing a level playing field for legitimate UK businesses. That is why the Government took decisive action at Budget 2016 to tackle VAT non-compliance by overseas traders who sell goods to UK customers via online marketplaces.

[Lord Lucas (Con)]

My Lords, that is a very welcome reply—albeit that it has been a very long time coming. For several years now, the Inland Revenue has known that it is losing £1.5 billion in VAT, and that we are losing £6 billion a year in economic activity, but has done nothing, so I am delighted to hear that things are changing. Will my noble friend please make sure that the Chancellor emphasises to HMRC that fairness is important, and that having teams of heavies go round to UK taxpayers and then do nothing about enormous abuse by Amazon and its serfs really gets people’s goats, does not make people love the taxation system and does not make them like the Government, either?

[Lord Bates]

First, I pay tribute to my noble friend for being a consistent campaigner on this issue, which has brought about significant change. We introduced the change where there is joint and several liability. The problem here is that non-EU importers are bringing in goods to the UK at wholesale prices, storing them here, selling them on at retail prices and not paying the VAT, thereby undercutting small businesses. We responded to that by introducing joint and several liability for online providers. That has meant that the number of non-EU traders registered in the UK has gone up from 700 to 17,500 just over the past two years—so we believe that we are making progress, but there is a lot more to do and we have further ideas in that area.

Psychoactive Substances Bill [HL]

Debate between Lord Bates and Lord Lucas

Tuesday 30th June 2015 Lords Chamber

[Lord Lucas]

My Lords, I thought that that was a superb explanation but I want to tax the Minister, if I might. There are many ordinary substances—glue being the obvious one, but there are a lot of other things such as spruce logs, which you can burn—which you can use in extremis in the absence of other things for psychoactive purposes. Usually, a supplier of these things would not have to ask themselves whether I intended to use the tube of UHU for psychoactive purposes. When this law is enforced, what rules will apply to a retailer when they are selling something? Most plastic packaging when burnt or heated will produce fumes with a psychoactive effect. What does the retailer have to do not to be reckless? If they think that I am someone who might do that sort of thing, does that qualify? If I sell something to someone, not particularly caring what they will use it for, and they go and kill themselves by using it for psychoactive purposes, am I going to be come after? What are the rules? What do I have to do as a retailer of perfectly ordinary things if there is a potential psychoactive use for them?

[Lord Bates]

My noble friend is correct in the sense that there are rules that exist relating to solvent abuse, the use of solvents in that regard and protections for retailers. However, we are very clear here as to the target audience for the purpose of this measure: individuals who are seeking to manufacture psychoactive substances for the purposes of being consumed by people for their psychoactive effect, or to supply, import or export. We do not believe that they will come into the categories of what would be appropriate retail activity. My noble friend makes a wider point, though. I will reflect again with officials on his remarks in the Official Report, and if I can expand upon that point to provide some additional guidance I will certainly write to him and copy it to other Members of the Committee.

Academies Bill [HL]

Debate between Lord Bates and Lord Lucas

Monday 28th June 2010 Lords Chamber

[Lord Lucas]

My noble friend’s Back Benches are in complete accord.

[Lord Bates]

Indeed, the guarantees were not just without any meaningful evidence as to what they actually meant, but without any resources so that teachers would be able to undertake that additional, onerous responsibility.