Loan Charge

Debate between Robert Buckland and Iain Duncan Smith

Thursday 18th January 2024 Commons Chamber

[Sir Iain Duncan Smith]

Absolutely, which brings me back to the point I was just making. I mean no insult to the civil servants, who work very hard; it is simply that the culture of HMRC is one of impunity. It does not behave like many other Government Departments. We have problems with other Departments—I ran one, so I know what that is all about—but HMRC acts very differently from them, and ultimately it is protected by the Treasury. That is where one of the biggest problems arises, and it is why it is so difficult to get any information out of HMRC, because even the Ministers who are in charge of it seem unable to command or direct it to provide that information. I make that observation from having worked in government.

[Sir Robert Buckland]

My right hon. Friend is making a very powerful point about HMRC. It was the product of a forced merger of the Inland Revenue and Her Majesty’s Customs and Excise by, I think, Gordon Brown and the Labour Government. The merger was rushed—they were pushed together—and HMRC has never enjoyed the proper scrutiny and ministerial involvement that it should have received. Does my right hon. Friend agree that now is the time for a root-and-branch review and a change to the nature of HMRC—retaining its independent functions, of course, but allowing for greater ministerial oversight?

[Sir Iain Duncan Smith]

I agree. I did not intend my speech to head off down this track, but I will observe that it has now become clear that HMRC is unable to find any legal basis to justify its claim that it has to pursue individuals, but not those who promoted the schemes. HMRC has tried to deny that for some time, but it has now become very clear; even its head, the permanent secretary, has stated that

“In recent months I have repeatedly tried to obtain legal analysis to understand the strength of our claim with very little success. For yesterday’s hearing we were initially given a summary of avoidance wins, some of which seemed to have nothing to do”

with the schemes. I simply say that HMRC still cannot justify the legal basis for pursuing individuals and not going after those who promoted the schemes.

[Sir Robert Buckland]

Will my right hon. Friend give way?

[Sir Iain Duncan Smith]

I am conscious of time. If my right hon. and learned Friend will forgive me, others have to speak, and I am going to try to stick to Madam Deputy Speaker’s prescription. I apologise to him.

I will quickly raise the cases of three of my constituents —Gareth Lloyd, Joe Green and Karen Duberry—all of whom have been facing terrible impositions. I am sure many colleagues have seen similar cases. Gareth Lloyd says that

“Facing and now paying the loan charge has meant years of stress with a constant stream of demands and letters from HMRC…when I should have been enjoying watching my young family grow up I’ve been constantly at fear of potentially losing our home.”

Joe Green says

“Nine years of worry, nine years of anxiety, nine years of not knowing what to expect from HMRC other than continual bullying tactics to try and extort monies from me”

with threats. Karen Duberry says that she was

“Shocked and alarmed when I learnt of the loan charge. I felt alone, scared, threatened and worried for me and my family…The mental stress on me and my family has been immense”.

We know that because at the far extreme of these cases, people have committed suicide, but there are many other problems between the extremes. All these people deserve a process that is better, fairer, open and reasonable and that goes after those who originally promoted the schemes. These people were under the impression—as was the case—that the schemes were quite legal.

The important point is that HMRC conjured up a retrospective process to deal with this, which is appalling. Historically, that has not been done—you deal with where you were at the beginning—but HMRC felt it had lost a whole load of taxation and did not want to blame itself. What it did was to go after those individuals, threaten them and cajole them.

An inquiry took place, but it now appears that the Morse review was not entirely independent. I gave some evidence, as many did, to the original inquiry, and I assumed at the beginning that it was completely independent. In fact, it turns out that it was not. HMRC got to see elements of the report before it was even published, which is astonishing to me as we were given a clear understanding that it was to be independent. There is much more that needs to be done, and that review is by no means the end of it.

I was surprised when my right hon. Friend the Member for Hereford and South Herefordshire (Jesse Norman), who was the Minister at the time, said:

“We…have plans under way to crack down further on the promoters of these avoidance schemes.”

It turns out that he did not. Why is a Minister allowed to stand at the Dispatch Box to make a statement drafted by civil servants, which we then find out is not right? He was not right: HMRC was going after the individuals, not those who promoted the schemes. As we have discovered, HMRC has no legal basis for doing that, so the whole thing has become a terrible mess.

I congratulate those who brought forward this debate, because there is so much more here that needs to be said. I just want to conclude by saying that this has been going on for too long, with laws changed retrospectively, denials about what HMRC was doing, bullying and intimidation, and a failure to come clean about the processes engaged in all of this. It is so familiar; as the right hon. Member for East Antrim (Sammy Wilson) said, we are in the middle of the problem over the Post Office, and we see the same things in that process. We have been seeing the same denials, protections and pretences with the loan charge for a long time. It is very clear now, and I hope the Minister agrees, that we are long past the point where we need to start recognising that this is not the way for any Government Department to behave when dealing with an issue such as this that has clearly created a huge problem.

My constituents and many others who have faced this issue should not be pursued in a way that treats them from the start as a criminal, rather than as somebody involved in something that HMRC never said was illegal at the time, but is now pretending that it is. I hope the Government will now recognise that we do not want to see a repeat of what happened with the Post Office scandal as a result of HMRC’s bad behaviour.

British and Overseas Judges: Hong Kong

Debate between Robert Buckland and Iain Duncan Smith

Wednesday 30th March 2022 Westminster Hall

[Sir Iain Duncan Smith]

I am grateful to the Minister for intervening on my opening remarks to make it clear what the Government have said, and I welcome that. We set up an organisation, the Inter-Parliamentary Alliance on China, a few years ago. It takes parliamentarians around the world from the left and right. There are 22 or 23 countries involved, from Japan to America, and we have all—as one voice throughout, and from all sides and from different parties—cried out for this for some time, so I unreservedly welcome today’s statement. I understand that my right hon. and learned Friend the Member for South Swindon (Sir Robert Buckland), who was himself Lord Chancellor, wants to intervene.

[Sir Robert Buckland (South Swindon) (Con)]

I am grateful for the work that my right hon. Friend has done. When I was Lord Chancellor, I worked with the then Foreign Secretary, who is now my successor, to agree a set of objective parameters that would be used in order to assess the situation in Hong Kong. That was done because we, unlike China, respect the independence of our judiciary. We respect judges’ right to sit in courts where they are not providing a veneer of respectability, but importantly, at the end of it all, the politics of the situation demanded that sort of objective test. It is a sad moment, but it is one that I am glad the Government have not flinched from, which is why I wholeheartedly support the decision made today. It is not just an important decision in legal terms; it is the United Kingdom sending a very clear message that we will not be party to giving regimes that are sliding into tyranny any shred of respectability whatever. That is why I welcome the statement today.

[Sir Iain Duncan Smith]

I am grateful to my right hon. and learned Friend. I know that he has privately been a big supporter of what we have been trying to do, so I appreciate his coming here now that he is no longer Lord Chancellor.

I simply say that this is a momentous decision, because right now in Ukraine—I referred to this earlier—we are seeing a totalitarian regime try to stamp out democracy and freedom in another country. In a funny sort of way, maybe we are seeing that the fight for freedom in Ukraine influences all of us to ensure that, whatever we do from the peaceful area that we live in, it does not allow other totalitarian regimes to have the legitimacy that would be given to them by our independent judiciary playing a part in Hong Kong and letting everybody believe that there is nothing wrong.

Economic Crime (Transparency and Enforcement) Bill

Debate between Robert Buckland and Iain Duncan Smith

Committee stage
Monday 7th March 2022 Commons Chamber

[Sir Iain Duncan Smith]

Yes. I take the hon. Lady’s point. The point I am making is that we should rightly assume that this is their responsibility—there is no let-out. If they misrepresent their position, they should face the full rigours of the law. It should not be a case that they can defend themselves before—

[Sir Robert Buckland (South Swindon) (Con)]

rose—

[Sir Iain Duncan Smith]

First, I will give way to the hon. Member for Oxford West and Abingdon.

[Sir Iain Duncan Smith]

We all have to stop agreeing like this, as it will give the House a bad reputation.

[Sir Robert Buckland]

My right hon. Friend is making an important point. I have looked at these amendments. Is not the best way to achieve his aim to make this offence a strict liability one, which does not require a state of mind and simply involves a set of facts having been established? There could be a reverse burden, whereby the subject demonstrates that they have not acted unlawfully. Strict liability might be the best way to achieve his aim.

[Sir Iain Duncan Smith]

I am grateful to my right hon. and learned Friend. I always bow to him in the knowledge of the law, as of course I would. I thought he was an excellent Justice Secretary—I will just slip that one in, gratis, and I am sure he can dine out on it. I agree with him wholeheartedly, because what he says is right. I will come back to the flexibility that is required, but I come to the principle of what we are saying. We are seeking to strike out that little lacuna that results from the words “knowingly or recklessly”. That would make this about the responsibility of the person concerned and that would be it—there would be no let-outs, no issues and no quibbling. This is the key. Everything in the other amendments is relevant to it; they merely backfill various areas, and it is important that they should refer to clause 31. They make it clear that responsibility rests with the individual—the entity, should I say—in this particular case.

Section 1 of the European Union (Withdrawal) Act 2019

Debate between Robert Buckland and Iain Duncan Smith

Tuesday 9th April 2019 Commons Chamber

[The Solicitor General]

I am grateful to my hon. Friend. I think he is absolutely right about the way in which the European Parliament is constituted. It is due, I think, to rise on 18 April, but it does not cease to exist—it does not dissolve in the way that we do. That is important in terms of ratification, because section 13 of the withdrawal Act that we passed obviously includes that requirement as well.

[Mr Iain Duncan Smith (Chingford and Woodford Green) (Con)]

I just want to clear up something that I heard my hon. and learned Friend say. I think I heard him say at the Dispatch Box that it was wholly feasible that the Government may actually end up fighting the European elections, then only after that not allow its MEPs to take their seats—say they had been given an extension, but somehow we had managed to ratify the deal. Is that correct? Is it Government policy that we would go as far as to fight an election but not take our seats at the end of it?

[The Solicitor General]

My right hon. Friend is right to ask about that detail. I think that we are obliged, as a matter of law, to prepare for European elections, but if we have exited the European Union by the end of June, we are no longer a member but a third country. Therefore, the requirement to take our seats in the European Parliament would have ended.

Oral Answers to Questions

Debate between Robert Buckland and Iain Duncan Smith

Monday 23rd June 2014 Commons Chamber

[Mr Duncan Smith]

As I said, we are rolling out universal credit to 90 sites and we will deliver it safely and carefully, unlike what the Labour Government did with tax credits. To answer the hon. Lady’s general question about what we are doing, this Department and this Government have undertaken the biggest welfare reform programme ever and we are getting more people into work—there are record numbers in work and record falls in unemployment; and we are getting more young people into work and more young people who have been long-term unemployed back into work. The benefit cap means that 42,000 people have been capped, as a result of which 6,000 have moved into work.

On universal credit, 600,000 claimant commitments have been signed. There are 6.9 million people registered for Universal Jobmatch. The Work programme—[Interruption.] She does not want to hear this because these are all records of the success of welfare reform. Through the Work programme, 550,000 people whom the previous Government wrote off and who never got a job are now back in work, and through auto-enrolment under the Minister of State, my hon. Friend the Member for Thornbury and Yate (Steve Webb), 3.6 million people have moved into a workplace pension. This is a Government who are reforming welfare. The Opposition have no policies, no purpose and no prospects.

[Mr Robert Buckland (South Swindon) (Con)]

T5. This morning I was with the staff and students of Farleigh college of further education in my constituency, which offers excellent education and training opportunities to young people with autism and other complex conditions. What more can my right hon. Friend do to ensure that we reach the goal of full employment by ensuring that increased opportunities exist for young people with learning disabilities and autism?