Asked by: Peter Dowd (Labour - Bootle)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many penalties related to off-shore activities HMRC collected in the last 12 months.
Answered by Mel Stride - Secretary of State for Work and Pensions
HMRC does not record data on penalties related to offshore activities in a single system, as cases can be complex and involve a combination of offshore and onshore elements. The information requested is not available.
Asked by: Peter Dowd (Labour - Bootle)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many late filing penalties HMRC collected in 2018 from small and medium-sized businesses.
Answered by Mel Stride - Secretary of State for Work and Pensions
HMRC does not record data on penalties paid by size of business so the information requested is not readily available and could be provided only at disproportionate cost.
Asked by: Peter Dowd (Labour - Bootle)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many promoters of tax avoidance schemes have complied with their obligations under the disclosure of tax avoidance scheme in each year since 2010.
Answered by Mel Stride - Secretary of State for Work and Pensions
Information about disclosures of tax avoidance schemes between 2010 and 2014 is available on GOV.UK. Data is recorded on a ‘scheme’ rather than promoter basis. Since 2014, over 60 schemes have been disclosed under DOTAS.
HM Revenue and Customs (HMRC) DOTAS Taskforce was set up to ensure compliance with the DOTAS regime. The team review all intelligence information, taking appropriate action where avoidance risks are identified.
HMRC has taken litigation action against 10 businesses that it considers to be avoidance scheme promoters for failure to disclose under the DOTAS regime, with around 20 others deciding to disclose to avoid litigation. Of the 10 cases, 6 have been heard before a tribunal and in each of the 3 decisions received so far, all have confirmed HMRC’s view that the schemes were disclosable, with decisions awaited in a further three cases. Further cases will be litigated in the year ahead.
Asked by: Peter Dowd (Labour - Bootle)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many investment agreements the Government has signed with the Chinese Government since 2010.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government has not signed any investment agreements with the Chinese Government since 2010. The UK-China investment relationship is strong, and the UK is the number one destination in Europe for Chinese Foreign Direct Investment.
Asked by: Peter Dowd (Labour - Bootle)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what official engagements and meetings he has scheduled at the 2nd Belt and Road Forum for International Cooperation in Beijing.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The second Belt and Road Forum took place in Beijing 25th to 27th April 2019. The Chancellor attended the opening ceremony and gave a keynote speech at the main plenary session. He also attended the Gala Dinner and Leaders’ Roundtable hosted by President Xi Jinping.
The Chancellor held bilateral meetings with Vice Premier Hu Chunhua, Premier Li Keqiang, Governor of the People’s Bank of China Yi Gang and Minister of Foreign Affairs for Thailand Don Pramudwinai. He attended a reception hosted by the China Britain Business Council and Department for International Trade, and met with the CEO of DiDi Will Cheng.
Asked by: Peter Dowd (Labour - Bootle)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions he has had with the former Prime Minister the Rt. Hon David Cameron ahead of the 2nd Belt and Road Forum for International Cooperation in Beijing.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Chancellor did not have any discussions with the Rt. Hon David Cameron ahead of the second Belt and Road Forum.
Asked by: Peter Dowd (Labour - Bootle)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will publish the HMRC penalties issued in 2018 by size of business.
Answered by Mel Stride - Secretary of State for Work and Pensions
The purpose of penalties is to encourage taxpayers to comply with their obligations, act as a sanction for those who do not and to reassure those who do comply that they will not be disadvantaged by those who do not. Penalties are not used as a revenue-raising mechanism.
Parliament determines the laws relating to tax and to whom they apply. HMRC apply those laws fairly and do not discriminate between different taxpayers or size of business.
HMRC can apply a large number of different penalties, but they break down into three broad areas:
• Automatic penalties for failure to meet a time-bound obligation, such as submitting returns or making payments by a specified deadline;
• Penalties for failure to meet a regulatory obligation, such as the requirement to keep certain records; and
• Behaviour-based penalties for inaccurate returns and documents and failure to notify taxable status.
A penalty is not payable if a person had a reasonable excuse for failing to meet an obligation or took reasonable care to avoid submitting an inaccurate return.
HMRC does not record data on penalties issued by size of business.
Asked by: Peter Dowd (Labour - Bootle)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how much revenue was collected in unpaid tax by HMRC as a result of successful tribunal cases in the last 12 months.
Answered by Mel Stride - Secretary of State for Work and Pensions
HMRC protected £2.5bn tax as a result of tribunal cases found in its favour in 2018-19.
In 2018-19 £389m was protected as a result of direct tax cases which were found in HMRC’s favour. In these cases, tax is not normally payable until the outcome of the appeal. In 2018-19 £2.1bn was retained as a result of successful indirect tax cases in the tribunals.
Asked by: Peter Dowd (Labour - Bootle)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 1 April 2019 to Question 237713, how many promoters and others involved in the marketing and promotion of tax avoidance schemes HMRC has investigated in the last 18 months.
Answered by Mel Stride - Secretary of State for Work and Pensions
HMRC uses a range of approaches to challenge promoters and others involved in the design, marketing and supply of avoidance schemes.
Over the last 18 months, HMRC has been investigating over 100 promoters and others involved in the promotion and marketing of tax avoidance schemes. HMRC has been successfully engaging with promoters encouraging them to change their behaviour. So far, around 20 promoters have moved out of promoting altogether.
HMRC are notified of tax avoidance schemes by promoters and others though the Disclosure of Tax Avoidance Schemes (DOTAS) regime. Around 30 schemes have been disclosed under DOTAS in the last 18 months.
HMRC has pursued 10 businesses promoting/ marketing avoidance schemes to litigation for failure to disclose under the DOTAS regime with around 20 others deciding to disclose to avoid litigation. Of the 10 cases, 6 have been heard before a tribunal and in each of the 3 decisions received so far, all have confirmed HMRC’s view that the schemes were disclosable, with decisions awaited in a further three cases. Further cases will be litigated in the year ahead.
HMRC has also made three successful complaints to the Advertising Standards Authority about misleading advertising. As a result, other avoidance promoters can’t make the same claims about other similar arrangements.
Asked by: Peter Dowd (Labour - Bootle)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 21 March 2019 to Question 233579, how many promoters of tax avoidance schemes have compiled with their obligations under the DOTAS legislation.
Answered by Mel Stride - Secretary of State for Work and Pensions
HMRC uses a range of approaches to challenge promoters and others involved in the design, marketing and supply of avoidance schemes.
Over the last 18 months, HMRC has been investigating over 100 promoters and others involved in the promotion and marketing of tax avoidance schemes. HMRC has been successfully engaging with promoters encouraging them to change their behaviour. So far, around 20 promoters have moved out of promoting altogether.
HMRC are notified of tax avoidance schemes by promoters and others though the Disclosure of Tax Avoidance Schemes (DOTAS) regime. Around 30 schemes have been disclosed under DOTAS in the last 18 months.
HMRC has pursued 10 businesses promoting/ marketing avoidance schemes to litigation for failure to disclose under the DOTAS regime with around 20 others deciding to disclose to avoid litigation. Of the 10 cases, 6 have been heard before a tribunal and in each of the 3 decisions received so far, all have confirmed HMRC’s view that the schemes were disclosable, with decisions awaited in a further three cases. Further cases will be litigated in the year ahead.
HMRC has also made three successful complaints to the Advertising Standards Authority about misleading advertising. As a result, other avoidance promoters can’t make the same claims about other similar arrangements.