United Kingdom Internal Market
Debate between Baroness Winterton of Doncaster and Sammy Wilson(10 months, 3 weeks ago)
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Madam Deputy Speaker (Dame Rosie Winterton)
There are two speakers left, and I suggest they speak for nine minutes each.
Loan Charge
Debate between Baroness Winterton of Doncaster and Sammy Wilson(11 months ago)
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Sammy Wilson (East Antrim) (DUP)
I beg to move,
That this House is deeply concerned that HMRC has confirmed the suicides of 10 people facing the Loan Charge and that, despite the Morse Review, thousands face unaffordable demands, with the risk of further suicides; notes that HMRC has also confirmed 24 cases of serious harm, including 13 suicide attempts; believes that many people who used schemes were victims of mis-selling, and that in other cases employers and agencies pushed people into using them, yet HMRC is demanding all disputed tax from scheme users, not from those who recommended, promoted and operated the schemes; further notes that section 44 of the Income Tax (Earnings and Pensions) Act 2003 deems agency workers to be taxable as employees of those agencies and that HMRC should have collected tax from agencies at the time; criticises HMRC transferring the liability to individuals despite its own failures; observes that HMRC is pursuing open enquiries for schemes before 2011 despite the Morse Review; also notes that HMRC is seeking additional payments from those who settled; further believes that the Morse Review was limited and not genuinely independent of HM Treasury and HMRC; highlights the resolution proposed by tax professionals; calls on the Government to work with all parties to find a fair resolution and for a full independent investigation, including into the conduct of HMRC; and believes that taxpayer rights must be enshrined in law and enquiries closed after four years if HMRC fails to act.
Before we start the debate, on behalf of my party, I pass on our condolences to the family of Tony Lloyd. He served for a short time as the shadow Minister for Northern Ireland. I always found him to be very courteous and well informed, and he wanted to be well informed. He asked the right questions and was always prepared to engage, even though he often did not agree with some of the stands we took. He was always happy to engage with all the parties in Northern Ireland, and we pass on our condolences to his family.
Madam Deputy Speaker (Dame Rosie Winterton)
Order. I am slightly concerned that there is something wrong with the sound. Let us start again.
Sammy Wilson
Thank you, Madam Deputy Speaker. I hope that the point I was making about Tony Lloyd was picked up. I want to pass on the condolences of our party to his family, and I pay tribute to the work he did as shadow Minister for Northern Ireland.
I thank the Backbench Business Committee for granting the debate. It is a timely debate and I know that the many thousands of people across the United Kingdom who have been affected by the loan charge in a very detrimental way will be glad that it is being considered in this House. Over the past two weeks, we have been looking at the dramatic fallout of the Horizon scandal at the Post Office and, quite rightly, we have been focusing on what belatedly can be done to repay and to deal with that great injustice. I say to the House—I do not think that I am being overdramatic when I say this—that we are looking at another Horizon scandal, and the parallels are frightening.
First, because of the actions of a Government Department, 10 people in the United Kingdom have committed suicide and many others have attempted to take their own lives because of the pressure they were put under by officials and by statute passed by this Parliament. We have heard time and again in evidence to the loan charge and taxpayer fairness all-party parliamentary group of the disruption and disaster this has caused in many families.
Secondly, despite the fact that alarm bells should be ringing in the Treasury, no action has been taken. Indeed, some Ministers have even refused to meet the group. Others have simply put out the party line and regurgitated the excuses of His Majesty’s Revenue and Customs for what is happening.
Sammy Wilson
That is a point I want to come to.
We are seeing that once again Ministers are turning a blind eye, and these lessons should be learned. Apart from two examples of Ministers that I can think of, one of whom—a former Minister—is present, Ministers turned a blind eye for years. We then had the result, but it was not until an ITV programme brought this matter to the nation as a whole that action was taken.
We have had attempts by HMRC to justify what it has been doing. In the past, postmasters and postmistresses who had unblemished records for years were accused of being thieves. We are now being told that the people who HMRC is chasing today are—to use its words—“serial tax evaders”. Minister, I have to say that when I read the letter that you—
Madam Deputy Speaker
Order. The right hon. Gentleman knows that he does not address the Minister directly, but through the Chair.
Sammy Wilson
When I read the letter that the Minister sent to the joint chairs of the all-party group, he started by once again reminding us that
“As you are aware, disguised remuneration schemes are contrived tax avoidance arrangements that seek to avoid Income Tax and National Insurance contributions”.
It is almost like a warning: “Don’t be taking up these cases, because these are bad people that you are talking about.” That is exactly parallel to what we found with the Horizon scandal.
Sammy Wilson
That brings me to the very last point— I promise it is my last, Madam Deputy Speaker. I will simply list the points and other people can take them up and expand them later on. There are a number of issues the Minister must consider. First, while I have no evidence of this, we have been told that HMRC officials, just as Post Office officials were, are on commission for the money that they bring in through the loan charge. The Minister must confirm whether that is the case, because if so, it would act as a huge incentive for them to pursue individuals relentlessly.
Secondly, I trust that the Minister, in his new position, will challenge the Department’s lines on this matter. We need a greater challenge than we have had so far. Thirdly, I believe that the loan charge needs to be repealed because it is not fit for purpose and is having a detrimental effect. Fourthly, the employers and promoters must be pursued. Under the law, they were responsible for collecting tax from the employees. That is the basis on which tax demands are now being made of people—that they were employees, not self-employed.
Fifthly, of course we recognise that the Government have to collect tax when it is due, but the current method of pursuing this will not bring in tax revenue because people are going bankrupt. A group of professionals has proposed that the Government could claim back an affordable proportion of the tax that is owed. They would get at least some tax revenue out of it while stopping this relentless pursuit of individuals. In the longer run, I think we need a Bill of rights for taxpayers, and for tax fairness to be built into legislation, but that is a matter for a longer debate.
There are people who are suffering today because they are being battered by the cosh that HMRC officials are using on them to extract money that they do not have and which many of them do not believe they owe. I ask the Minister to grasp this nettle and ensure that we do not have another Horizon scandal.
Madam Deputy Speaker (Dame Rosie Winterton)
As colleagues can see, this is a very well-subscribed debate, with another debate to follow. In order to give equal time to Back Benchers throughout the afternoon, my advice—I would rather not put a time limit on—is that colleagues stick to about seven minutes. I am sure that Greg Smith will lead the way.
Sammy Wilson
Does the Minister accept that HMRC officials helped to service the Morse review, and restricted its grounds and parameters? The original of that review has not been disclosed, and we do not know how it was changed in the meantime. There are great doubts about whether or not the Morse review was ever an independent review, and ever came to conclusions that would have dealt with the issues and the unfairness we have been discussing today.
Madam Deputy Speaker (Dame Rosie Winterton)
Before the Minister replies, I do want to say that I have given him more time than would normally be allocated for a Backbench Business debate. Several colleagues have tried to intervene, but do be aware that we have another important debate to follow. I am sure the Minister will be cognisant of that fact.
Covid-19 Vaccinations: 12 to 15-year-olds
Debate between Baroness Winterton of Doncaster and Sammy Wilson(3 years, 3 months ago)
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United Kingdom Internal Market Bill
Debate between Baroness Winterton of Doncaster and Sammy Wilson(4 years, 3 months ago)
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The First Deputy Chairman of Ways and Means (Dame Rosie Winterton)
I thank the last few speakers, who have stuck brilliantly to the shorter time limit, but I point out that there are still many colleagues who want to get in. If we can stick to the five minutes, that would be very considerate of others who have sat here for a long time wanting to speak.
Sammy Wilson
I assume that your remarks were addressed to me, Chair, and I will do my best to respond positively. It is a great joy to follow the hon. Member for North West Cambridgeshire (Mr Vara), who has been a great friend of Northern Ireland and has taken a principled stand during the previous debates on the Brexit negotiations. He is highly regarded in Northern Ireland for his principled stand, his pro-Unionist views and his willingness to make sacrifices for those pro-Unionist views, too.
We will be supporting the Bill this evening and these particular clauses, but I have to say we have some reservations about the extent and the distance that the Government have gone to try to reverse the damage done by the withdrawal agreement and, in particular, the Northern Ireland protocol. I am pleased that the Government now recognise that, either inadvertently or deliberately, damage is being done to not just Northern Ireland, but the United Kingdom as a whole as a result of the withdrawal agreement, and they are trying to reverse it.
Two arguments have been advanced as to why people should oppose the Bill. The first—it has been an obsession in the House this evening, and outside the House over the past number of days—is that it goes against the Good Friday agreement. Indeed, if one looks at the amendments tabled by the nationalist Social Democratic and Labour party and the nationalist Alliance party, it is clear that their only concern is the Good Friday agreement, or their interpretation of the Good Friday agreement. All the amendments that my party have tabled address not the alleged ineffectiveness of the protocol in dealing with the Good Friday agreement, but the real problems that will be caused for Unionists, nationalists, the young, the old, businesses and workers in Northern Ireland by the protocol going through in the form that the EU wishes and by it being imposed in the way the EU wishes.
The protocol will have an effect by putting up costs—that is not my assessment, but the Government’s—reducing opportunities and variety for consumers, impacting on investment and impacting on the trade we do with our biggest market in GB. That is the effect. I will not go through all our amendments, because my hon. Friend the Member for Belfast East (Gavin Robinson) went through them very succinctly and effectively when he was speaking. All our amendments are designed to undo that economic damage.
Let me just address the issue of the Good Friday agreement. It is significant that when pressed about how the Good Friday agreement is damaged, all we can get from those who make that claim is, “Well, it may not actually go against what is written in the Good Friday agreement, but it goes against the spirit of it”, or to use the words of the hon. Member for Belfast South (Claire Hanna), “It goes against the implications”—not the wording, and she admitted that—“of the Good Friday agreement”. She could not find a clause in the Good Friday agreement that was breached by the legislation. Instead, it was the intention and the implication of it.
The truth of the matter is, of course, that the Good Friday agreement is offended by the withdrawal agreement, because the withdrawal agreement affects Northern Ireland politically. Laws will now be made in Brussels rather than in Westminster. Northern Ireland will be subject to rule by the EU; we will be part of its single market rules rather than part of the UK single market.