Asked by: Iain Duncan Smith (Conservative - Chingford and Woodford Green)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has made an assessment of the implications for her policies of reports that Chinese companies have registered more than 30,000 companies at UK addresses where the registered owners have no connection to the business concerned.
Answered by Tulip Siddiq - Economic Secretary (HM Treasury)
DBT and Companies House are moving at pace to implement the Economic Crime and Corporate Transparency Act 2024, a principal purpose of which is to strengthen the powers of the Registrar of Companies to bear down on the abuse of corporate structures in the UK. Enhanced intelligence sharing between public authorities is a key element in that.
HMRC is aware of the risk of overseas sellers misrepresenting their true establishment to an online marketplace so that the online marketplace will not charge VAT, and continues to keep the policy under review. Rules introduced in January 2021 make Online Marketplaces responsible for VAT on goods sold by overseas businesses on their platforms.
Asked by: Iain Duncan Smith (Conservative - Chingford and Woodford Green)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of bringing forward legislative proposals to place on a statutory footing the ability to redirect a portion of funds recovered from sanctions violations penalties to provide reparations for survivors of (a) human rights and (b) humanitarian law violations.
Answered by Tulip Siddiq - Economic Secretary (HM Treasury)
The Office of Financial Sanctions Implementation (OFSI) is responsible for issuing civil monetary penalties for breaches of financial sanctions. OFSI maintains a robust and effective toolkit for responding to breaches of financial sanctions, of which monetary penalties remain a key component. Monetary penalties are not always the most appropriate enforcement outcome. Many cases are resolved privately through warning letters, other advice to firms or referrals to regulators.
The money collected from monetary penalties is deposited into the Consolidated Fund, in line with the general principles applying to the treatment of fines or other penalties imposed by public bodies in central government. OFSI currently has no plans to change this system.
Asked by: Iain Duncan Smith (Conservative - Chingford and Woodford Green)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she is taking to tackle VAT fraud; and if she will bring forward legislative proposals to extend Deemed Reseller rules to UK-established businesses.
Answered by James Murray - Exchequer Secretary (HM Treasury)
Tax fraud undermines our economy, hurts legitimate businesses and robs our vital public services of much-needed funds.
The government is clear in its commitment to closing the tax gap, and ensuring everyone pays the tax that is legally due.
HMRC uses a wide range of civil and criminal powers to tackle VAT fraud. Online Marketplace liability rules were introduced in 2021 specifically to tackle VAT fraud and non-compliance by overseas sellers. The OBR estimates this will raise £1.8 billion per annum by 2026/27. The government continues to keep this tax policy under review.
Asked by: Iain Duncan Smith (Conservative - Chingford and Woodford Green)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will commission an independent review into the loan charge.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Chancellor and I know that the loan charge is a very important matter for many members and their constituents. We have been considering this matter since taking office and will provide an update in due course.
Asked by: Iain Duncan Smith (Conservative - Chingford and Woodford Green)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he has taken to investigate (a) Bank Saderat PLC, (b) Melli Bank PLC and (c) other Iranian financial institutions based in the UK with links to the Iranian Government.
Answered by Bim Afolami
The Office of Financial Sanctions Implementation (OFSI) is the authority responsible for implementing and enforcing the UK’s financial sanctions on behalf of HM Treasury.
On 14 December 2023, the UK announced a new sanctions regime that gives the UK extensive new powers to disrupt and deter Iran’s hostile activities in the UK and around the world. This has been developed to respond to unprecedented threats from the Iranian regime, including efforts to undermine peace and security across the Middle East and plots to kill individuals on UK soil. Overall, the UK has designated over 400 Iranian individuals and entities including in relation to Iran’s destabilising regional activity, human rights abuses, and nuclear proliferation.
OFSI assesses every instance of reported non-compliance and will act in all cases where we conclude a breach has occurred. OFSI does not comment on specific cases.
Non-compliance with UK sanctions is a serious offence and punishable through disclosures, large financial penalties, or criminal prosecution. Departments from across HMG including FCDO, HMT, OFSI, HMRC, HO, and the NCA, are working together, and with UK companies, to ensure that sanctions are enforced.
Asked by: Iain Duncan Smith (Conservative - Chingford and Woodford Green)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he plans to take to hold to account UK-based (a) entities and (b) people continuing to deal with the (i) Iranian Government and (ii) IRGC in breach of UK sanctions.
Answered by Bim Afolami
The Office of Financial Sanctions Implementation (OFSI) is the authority responsible for implementing and enforcing the UK’s financial sanctions on behalf of HM Treasury.
On 14 December 2023, the UK announced a new sanctions regime that gives the UK extensive new powers to disrupt and deter Iran’s hostile activities in the UK and around the world. This has been developed to respond to unprecedented threats from the Iranian regime, including efforts to undermine peace and security across the Middle East and plots to kill individuals on UK soil. Overall, the UK has designated over 400 Iranian individuals and entities including in relation to Iran’s destabilising regional activity, human rights abuses, and nuclear proliferation.
OFSI assesses every instance of reported non-compliance and will act in all cases where we conclude a breach has occurred. OFSI does not comment on specific cases.
Non-compliance with UK sanctions is a serious offence and punishable through disclosures, large financial penalties, or criminal prosecution. Departments from across HMG including FCDO, HMT, OFSI, HMRC, HO, and the NCA, are working together, and with UK companies, to ensure that sanctions are enforced.
Asked by: Iain Duncan Smith (Conservative - Chingford and Woodford Green)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to ensure that UK financial institutions comply with UK sanctions against Iran.
Answered by Bim Afolami
The Office of Financial Sanctions Implementation (OFSI) is the authority responsible for implementing and enforcing the UK’s financial sanctions on behalf of HM Treasury.
On 14 December 2023, the UK announced a new sanctions regime that gives the UK extensive new powers to disrupt and deter Iran’s hostile activities in the UK and around the world. This has been developed to respond to unprecedented threats from the Iranian regime, including efforts to undermine peace and security across the Middle East and plots to kill individuals on UK soil. Overall, the UK has designated over 400 Iranian individuals and entities including in relation to Iran’s destabilising regional activity, human rights abuses, and nuclear proliferation.
OFSI assesses every instance of reported non-compliance and will act in all cases where we conclude a breach has occurred. OFSI does not comment on specific cases.
Non-compliance with UK sanctions is a serious offence and punishable through disclosures, large financial penalties, or criminal prosecution. Departments from across HMG including FCDO, HMT, OFSI, HMRC, HO, and the NCA, are working together, and with UK companies, to ensure that sanctions are enforced.
Asked by: Iain Duncan Smith (Conservative - Chingford and Woodford Green)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether the Government has provided funding for the Asian Infrastructure Investment Bank.
Answered by Andrew Griffith - Shadow Secretary of State for Business and Trade
The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank with 106 approved and prospective members globally. It invests in infrastructure and other productive sectors to foster sustainable economic development, create wealth, and improve infrastructure connectivity in Asia.
Alongside other members, the UK provided an initial financial contribution in return for AIIB shares. More details can be found in the AIIB Capital Order 2015.
In addition, the UK contributed to the AIIB’s Project Preparation Special Fund, which provides grant support for the preparation of high-quality projects for AIIB Members, especially less developed Members.
The Government works closely with the AIIB and other shareholders to ensure its investments are in line with international standards and best practice.
Asked by: Iain Duncan Smith (Conservative - Chingford and Woodford Green)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, for what reasons HMRC did not enforce the agency rules under (a) section 134 of the Income and Corporation Taxes Act 1988 and (b) section 44 of the Income Tax (Earnings and Pensions) Act 2003.
Answered by Victoria Atkins - Shadow Secretary of State for Environment, Food and Rural Affairs
Under section 44 of the Income Tax (Earnings and Pensions) Act 2003, and previously section 134 of the Income and Corporation Taxes Act 1988, most agency workers must be treated as employees for Income Tax and National Insurance contributions (NICs) purposes by the agencies that pay them. These agencies are required to make deductions of Income Tax and employee NICs, where these are due, from the workers’ pay in the same way and at the same level as with direct employees. The agencies will also be liable to pay employer NICs, where these are due, in respect of payments to the workers.
HMRC has a risk-based approach towards compliance activities and will investigate evidence of non-compliance or avoidance. Where HMRC finds that an agency has failed to account for tax and NICs, it will seek to recover unpaid amounts due.
Asked by: Iain Duncan Smith (Conservative - Chingford and Woodford Green)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answers of 6 June 2022 to Question 9826 on Treasury: Hikvision and of 6 April 2022 to Question 124950 on Hikvision, and with reference to the Biometrics and Surveillance Camera Commissioner's recommendations regarding the use of Hikvision cameras by Government departments, what steps is his Department taking in response to those recommendations.
Answered by Helen Whately - Shadow Secretary of State for Work and Pensions
As has been the case under successive administrations, it is not government policy to comment on the security arrangements of government buildings.
The National Cyber Security Centre and the Centre for Protection of National Infrastructure provide guidance on the use of IP-connected cameras and cyber-connected physical security systems.
Security measures within departments are tailored to protect each site, proportionate to the level of threat, aligned with the HMG Minimum Security Standards and, take into account the building risk categorisation and the physical composition of the site.