Asked by: Margaret Hodge (Labour - Barking)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, whether his Department made an estimate of the level of losses to (a) fraud and (b) error through the Bounce Back Loan Scheme in May 2020.
Answered by Kevin Hollinrake - Minister of State (Department for Business and Trade)
The Bounce Back Loan Scheme (BBLS) was announced on 27 April 2020 and launched on 4 May 2020. BBLS was launched in extraordinary circumstances. Ministers made an explicit trade-off to ensure businessescould get the financial support they urgently needed as quickly as possible, despite the increased fraud risks this entailed.
The residual fraud risks (which were captured in a draft review prepared by PwC for the British Business Bank) were referenced in the Ministerial Direction letters published in relation to the Scheme, and the Reservation Notice published by the British Business Bank.
The Cabinet Office began an extensive BBLS fraud analytics programme in July 2020. Fraud and error estimates were given due consideration throughout these discussions.
Asked by: Margaret Hodge (Labour - Barking)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, with reference to the Government’s commitment to have an operational register in place in 2021, when he plans to bring forward legislative proposals for the Registration of Overseas Entities Bill.
Answered by Paul Scully
The Government remains determined to ensure there is no safe space for illicit finance or corruption in our society. The Financial Action Task Force (FATF) completed a landmark review of the UK’s regime for tackling money laundering and terrorist financing in December 2018, concluding that we have some of the strongest controls in the world.
The register will be the first of its kind in the world. It is essential that the new requirements are workable, proportionate and that the register strikes the right balance between improving transparency and minimising burdens on legitimate commercial activity.
The Government is amending the draft Registration of Overseas Entities Bill in line with the recommendations of the 2019 Joint Pre-Legislative Scrutiny Committee. This will make the legislation as effective as possible in tackling the use of UK property for the purpose of money laundering.
I refer the Rt. Hon. Member to the Written Ministerial Statement I made updating the House of Commons on its progress in May 2020, Official Report, 21 July 2020, Column HCWS413.
Asked by: Margaret Hodge (Labour - Barking)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, pursuant to the Answer of 17 June 2020 to Question 57275, which proposals for Companies House reform are still under consideration and not finalised.
Answered by Paul Scully
The Government is currently considering a broad package of reforms to Companies House to ensure it is fit for the future and continues to contribute to the UK’s business environment. Last year’s consultation on Corporate Transparency and Register Reform received a significant number of responses and an official government response with detailed proposals for the way forward will be published shortly.
Asked by: Margaret Hodge (Labour - Barking)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, when he plans to publish the response to the consultation on Corporate Transparency and Register Reform that closed in August 2019.
Answered by Paul Scully
The Government is currently considering a broad package of reforms to Companies House to ensure it is fit for the future and continues to contribute to the UK’s business environment. This would amount to the most significant reform of the UK’s company registration framework since a?companies?register was first introduced in 1844, and it is important, therefore, to take the time to get it right.
The consultation received a significant number of responses and an official government response with detailed proposals for the way forward will be published in due course.
Asked by: Margaret Hodge (Labour - Barking)
Question to the Department for Business, Energy and Industrial Strategy:
To ask Business, Energy and Industrial Strategy, in how many cases where HMRC raised objection to the striking off of a company by the Register of Companies was that objection acted upon by the Registrar of Companies in (a) 2012-13, (b) 2013-14, (c) 2014-15, (d) 2015-16 and (e) 2016-17; in how many such cases was additional tax revenue raised as a result of that objection in each such year; and how much additional revenue was raised as a consequence in each such year.
Answered by Andrew Griffiths
Please find figures below for the number of HMRC Objections to the dissolution process actioned by Companies House in each of the financial years requested. Please note that all HMRC objections received are actioned.
Period | Number of HMRC Objections actioned. |
2012-2013 | 109,821 |
2013-2014 | 90,947 |
2014-2015 | 59,336 |
2015-2016 | 94,280 |
2016-2017 | 107,372 |
Please note: The information provided forms part of Companies House’s management information and is unaudited. Therefore, it is subject to change and should be used for indicative purposes only.
HMRC do not separately estimate the tax gap due to companies being struck off. However, the HMRC Trust Statement contains figures for tax written off each year. Around 90% of the amounts written off relate to insolvencies.
These figures differ from those provided by my right hon. Friend the Financial Secretary to the Treasury in the answer to PQ UIN 126607 for a number of reasons. In particular, timing differences in the recognition of objections from HMRC, situations where the application to strike off has been abandoned by the time HMRC’s objection is processed and cases where HMRC are required to issue multiple objections in respect of the same winding up due the length of time involved.
Asked by: Margaret Hodge (Labour - Barking)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, how many Scottish Limited Partnerships have been fined since the People with Significant Control register came into force.
Answered by Margot James
No Scottish Limited Partnerships (SLPs) have been fined since the People with Significant Control (PSC) register came into force.
Compliance is Companies House's primary aim, rather than prosecution. It is taking action to ensure that all SLPs report their PSC information. Where SLPs do not comply, Companies House will consider what further action to take. Cases may be passed to enforcement agencies who will, where appropriate, conduct a criminal investigation, possibly resulting in prosecution.
Asked by: Margaret Hodge (Labour - Barking)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, when he plans to bring forward legislative proposals to provide for a register showing who owns and controls overseas legal entities that own UK property or participate in Government procurement.
Answered by Margot James
The responses to the call for evidence are currently being analysed and a response will be published in due course.
Asked by: Margaret Hodge (Labour - Barking)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, which UK-based Trust and Company Service Providers have incorporated more than 20 Scottish Limited Partnerships.
Answered by Margot James
It is not a legal requirement for Trust and Company Service Providers to provide their information and many of them choose not to. As the information Companies House possesses is not complete, I have asked the Registrar of Companies to reply to the Right Hon. Member separately with the information the Registrar has available to her and with a full explanation on how it has been arrived at.
Asked by: Margaret Hodge (Labour - Barking)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, if he will bring forward proposals to prevent public relations companies based in the UK undertaking work that aims to misrepresent the human rights record of a person or government.
Answered by Margot James
These are matters for the companies concerned and for any trade associations of which they are members.
Asked by: Margaret Hodge (Labour - Barking)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, if he will take steps to ensure that complete and accurate data is provided to Companies House when a UK entity, such as a Scottish Limited Partnership, is formed.
Answered by Margot James
When Scottish Limited Partnerships are formed they must file the appropriate forms with the Registrar of Companies for Scotland. Companies House will ensure that the forms are correctly completed and meet the criteria for acceptance.