Consumer Rights Bill

Debate between Clive Efford and John Redwood

Monday 12th January 2015 Commons Chamber

[Clive Efford]

I am answering the hon. Gentleman’s point and he can come back to me on it in a minute, although I am going to shut up quite soon.

Some of the people purchasing these tickets are clearly involved in criminal gangs, as shown in the report on Operation Podium from the Metropolitan police. That report was given to the Government and they were warned that it was not just a question of people making a few bob on the secondary ticketing market. The people who set up these botnets to swamp the market when tickets are first offered for sale are often involved in criminal gangs associated with drugs and firearms. The Metropolitan police have raised serious concerns about this and we ignore them at our peril. What kind of free market wants to perpetuate such activity? I am interested in that.

[Mr Redwood]

We have heard a lot about the £500 tickets to go to a particular day of the Lord’s test against Australia, but as a cricket lover who wants more people to be able to go to test matches does the hon. Gentleman agree that an awful lot of tickets are on offer from the original vendor at very sensible prices for Headingley, Durham, Old Trafford and so on and that people could go to those?

[Clive Efford]

I am delighted that those tickets are on sale at very sensible prices, which is why I am in the Chamber to support the ECB, the RFU, the FA and others in asking for the sensible ticketing policies they apply to be protected. All they are asking is to have the information available when a ticket is offered for resale so that they can see whether that ticket is being sold according to the original terms and conditions for the sale. We should not be allowing organised gangs to exploit the consumer by hoovering up these tickets and forcing people to pay much higher prices on the secondary ticketing market.

Fixed Odds Betting Terminals

Debate between Clive Efford and John Redwood

Wednesday 8th January 2014 Commons Chamber

[Mr John Redwood (Wokingham) (Con)]

Will the hon. Gentleman help me by explaining something? How would stopping new shops prevent addictive gambling when we know that there are already so many shops out there and when in the last three years of the Labour Government, when it was known there was a problem, they did not think that anything could be done about it?

[Clive Efford]

I am sorry to disappoint the right hon. Gentleman, but I think that he has been lured by briefings from his own side. This motion is not about problem gambling, but about giving local authorities powers to deal with the proliferation of betting shops in our high streets—for planning and economic regeneration reasons, as well as because of concerns about the social impact of fixed odds betting terminals. We are not trying to suggest that passing the motion will solve problem gambling in relation to FOBTs, and the Prime Minister was mistaken today when he answered the Leader of the Opposition’s question on that matter.

Finance Bill

Debate between Clive Efford and John Redwood

Monday 12th July 2010 Commons Chamber

[Mr Redwood]

Let me start by saying a few words about my new hon. Friend the Member for Lincoln (Karl MᶜCartney). I am sure that the House will join me in praising him for his speech and in wishing him every success now that he has joined us here. It is good to hear someone with a radio face with a passionate voice for his constituency. If he continues that, I am sure that his constituents will be well served. It was great to be reminded of the hugely important Lincoln cathedral, which many of us have visited and admired, and of the fact that Parliaments were once more peripatetic. In those days, there was probably less security and fewer people in the baggage train, so it was probably cheaper to take Parliament around the country than it would be today. I fear that he might have quite a long wait before the next Parliament at Lincoln.

We are here to debate tax avoidance and evasion. I listened carefully to the hon. Member for Hayes and Harlington (John McDonnell), but I think that the Committee is pursuing a will-o’-the-wisp if it seriously believes that there is £120 billion of tax evasion and avoidance generally, and that there is substantial tax evasion and avoidance in particular on corporation tax, which we are debating, that we can tackle and get the money in from. Every hon. Member would like to think that there is an easy way out of the financial crisis. If there were a great pot of money representing tax dodging that we could identify and bring into the Treasury, it would have been done by now. It is not a matter of party dispute. If there are tax evaders out there whom we know about, they need to be brought to book—we all agree with that. Labour spent 13 years trying to do it, but the hon. Gentleman does not think that it did it well enough, and is now urging the coalition Government to do it. The coalition Government will pursue it in similar ways, with similar intensity, to the outgoing Labour Government. I fear that they will be no more successful than the previous Government at finding that £120 billion pot of gold because, in all honesty, I do not think that it exists in the form that hon. Members wish that it did.

Let us take evasion—the more serious case. I am sure that everyone in the House agrees that if someone is deliberately evading tax, it is a criminal offence. The House has said that it is a serious offence, and made it a criminal offence, or series of criminal offences, and we wish to see those people pursued and prosecuted. In the case of corporation tax, for example, if a company deliberately misreports its income, and says that it receives less income than it earned—one way of misleading the tax authorities over corporation tax—the book should be straightened, the record corrected, and they should be prosecuted. If the company deliberately overstates its costs to try to suppress its profits—the other way in which people could evade corporation tax, if they were seeking to do so—that, too, should be something that the authorities can identify on investigation, leading to a correction of the accounts. False accounting would be involved, as well as the criminal offence of tax evasion, and there are methods of tackling it. The state has a range of powers, introduced by Governments of all persuasions, to allow company investigation, including second-guessing the audit, and going in if it is thought that crooked directors are misrepresenting their costs or revenues, and the auditors have missed it. I wish my right hon. and hon. Friends the Ministers in the Treasury every success in trying to capture genuine crooks, because we do not need them in our community, and we need to flush them out.

There is another kind of failure to pay the amount of tax that the corporation tax authorities think is correct which, in some people’s language, could be evasion. A company may report honestly its revenues and costs, but comes to a different conclusion from the Revenue about what the taxable profit should be, given its income stream and costs. It attempts to understand the complexity of the law—it may well have its own tax advisers and auditors in support, because any medium or large company does not do this in isolation; the directors want the comfort of knowing that they have serious tax experts behind them, because of the complications of the law—and it makes its case to the Revenue, which disagrees with them. I do not think that that should be treated as a severe criminal offence leading to the imprisonment of the directors. What should usually happen—and what tends to happen—is a fierce exchange of views between the Revenue, which is trying for one view of the tax, and the company and its tax advisers with a different view. Eventually, agreement is reached. If it is thought to be a bad case, the Revenue has the power to impose financial penalties as well as to secure the tax that it thinks that it is owed.

[Clive Efford (Eltham) (Lab)]

I am interested in the right hon. Gentleman’s train of thought, but will he clarify something? Is he saying that there is no such thing as avoidance of corporation tax, or is he saying that anything that comes about is just the result of a misunderstanding?

[Mr Redwood]

Has the hon. Gentleman been in the Chamber while I have been talking? The first part of my speech was about bad cases of evasion in which a company has deliberately misrepresented its financial condition. Like him, I think that those cases should be taken seriously, and prosecution should result. I am going on to the second set of cases, in which evasion is thought to have taken place according to the Revenue, but when we look at what is going on there is a genuine disagreement between one group of tax experts, lawyers and company advisers and another lot advising the Revenue, which sometimes needs to consult counsel on these complicated matters to try to reach a conclusion. Such cases are often sorted out slightly more amicably, and rightly so, because the companies concerned were obviously not trying to do down the Revenue but to pay the minimum amount of tax to comply with the law, as most sensible people try to do, and there was a disagreement that had to be sorted out sensibly. That might result in financial penalties or in an agreement not to have financial penalties, but usually the Revenue has a certain amount of strength in having its way.

That is evasion, and then there is avoidance, which is much more problematic. I am sure that billions-worth of avoidance is going on all the time, because it is a perfectly legal approach; one man’s avoidance is another man’s sensible tax planning. That is why I asked the hon. Member for Hayes and Harlington for an example relating to personal income tax, which is easier for people listening in to this debate to understand. Many small savers switch from tax-paying savings to tax-free savings, which is avoidance of tax, is it not? They realise that they can do better by having a tax-exempt savings product; surely we should not condemn that, because it is about someone trying to get the most for their money. Indeed, that is something that the Government positively encourage. They encourage tax avoidance because they say, “We have the unique power to provide tax-exempt products for savings, and we want you to buy ours rather than the taxed private sector product.”

--- Later in debate ---

[Clive Efford]

My hon. Friend’s intervention needs no comment from me, other than to say that it is an excellent example of the sort of practices that we need to bear down on. We pay a plethora of accountants and financial advisers to advise on how to invest our money wisely, and that is a legitimate area of activity. It is right that people may order their finances within the rules to maximise their income, but if that becomes exploitation or unfair in terms of what people are contributing, we have to act. That is where the amendments that we have tabled on capital gains tax, which we will discuss later, come in.

The hon. Member for Dundee East (Stewart Hosie) mentioned the cut in tax staff, and if we are going to see substantial cuts in staff, it will make it even more difficult for HMRC staff to perform their task on whatever tax they are pursuing, be it corporation tax or any other.

The right hon. Member for Wokingham seemed to dismiss the issue of tax evasion, suggesting that we could pursue evaders until the cows came home, but they would never pay the tax so we would not be able to close the deficit by pursuing them. He then went on to talk about the difference between evasion and avoidance, rather than focusing on what we can do—as the people who scrutinise legislation—to ensure that the Government are delivering on their words in the Budget.

[Mr Redwood]

I wish to correct the record. I made it very clear that if a company were evading tax, we should throw the book at them and get the money back.

[Clive Efford]

My point is that that was the sum total of the right hon. Gentleman’s contribution on that subject. He then elaborated on other issues. The point is that the thrust of the amendment is evasion—people working the system in a way that breaches the rules and means that they do not make the contributions that they should make. Those are the people we should bear down on. In my intervention in his speech, he accepted that there was such avoidance, and that those people should be dealt with. It is how we scrutinise that that we are discussing now. It is the function of this House to hold the Government to account, and the amendment asks for a report to Parliament on what exactly the Government are doing.

I congratulate my hon. Friend the Member for Hayes and Harlington on his amendment, and I look forward to hearing what the Government have to say in response.

Finance Bill

Debate between Clive Efford and John Redwood

Tuesday 6th July 2010 Commons Chamber

[Mr Redwood]

The point that I have been making for the Labour party’s benefit is that I think it is possible to get a reasonable private sector-led recovery from here, because the private sector was so gravely damaged and battered, and the figures were so awful, in ’08-’09. We are talking about rates of change from a very low base, so it is quite possible for things to get going.

[Clive Efford]

rose—