Tag: Lord Myners

The below Parliamentary question was asked by Lord Myners on 2015-02-12.

To ask Her Majesty’s Government whether copies of HM Revenue and Customs Board papers and minutes of Board meetings are provided to HM Treasury and the Board of HM Treasury or its Council of Economic Advisers.

Lord Deighton

Information provided to HM Revenue & Customs (HMRC) by the French tax authorities in respect of individuals indicated to hold accounts at the Geneva branch of HSBC Suisse and understood to be UK residents was supplied to HMRC under the terms of both the Mutual Assistance Directive 77/799/EEC^[1] and the Double Taxation Convention in force between France and the United Kingdom at that time^[2].

The Mutual Assistance Directive had been in force since 23 December 1977. The Double Taxation Convention has been in force since 18 December 2009, replacing an earlier convention which had been in force since 1969.

Since their entry into force each of these agreements has been a matter of public record.

There was, therefore, no new agreement for the Board of HMRC to negotiate or consider in connection with the provision of the information by the French tax authorities.

HMRC does not share copies of Board papers and minutes with HM Treasury. However, senior HM Treasury officials are standing invitees to HMRC’s monthly Executive Committee meeting, which is the Department’s main executive forum and the primary place where decisions are taken with regards to setting and delivering strategy and improving performance in key areas, and as such they have routine access to relevant committee meeting papers and minutes.

Each HMRC Executive Committee member also takes responsibility for the management of activities within a specific portfolio, including enforcement and compliance and business or personal tax customer services; HM Treasury officials do not have access to this level of information which ‎contains operational compliance and taxpayer confidential information.

[1] http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:31977L0799

[2] http://www.hmrc.gov.uk/taxtreaties/in-force/france.pdf

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The below Parliamentary question was asked by Lord Myners on 2015-02-11.

To ask Her Majesty’s Government whether it is routine policy for the Cabinet Office to contact HM Revenue and Customs to consult it prior to the appointment of a non-elected Minister.

Baroness Stowell of Beeston

As was the case under previous administrations, ministerial appointments are a matter for the Prime Minister, in line with the Ministerial Code.

For those individuals upon whom the Prime Minister wishes to confer a life peerage, the independent House of Lords Appointments Commission vets nominations. For those individuals upon whom the Prime Minister wishes to confer a peerage in order that they might sit in the House of Lords to take up a ministerial role, the Commission consults the main regulatory authorities, including HMRC, before giving advice.

The below Parliamentary question was asked by Lord Myners on 2015-02-11.

To ask Her Majesty’s Government whether they still consider it appropriate to allow Chinese banks to open branches in the United Kingdom.

Lord Deighton

The decision-making on applications from Chinese banks to establish branches in the United Kingdom is a matter for the independent Prudential Regulation Authority, consistent with its broader policy on the regulation of non-European Economic Area banks.

The below Parliamentary question was asked by Lord Myners on 2015-02-10.

To ask Her Majesty’s Government which were the 10 jurisdictions into which closed bank accounts held in Switzerland by United Kingdom residents were transferred according to information provided to them by the Swiss National Bank.

Lord Deighton

HL4893

Under the Swiss Agreement HMRC received a list of the top 10 destinations to where funds were moved in the period before the Agreement came into force. They are using this information together with information from compliance work to follow the proceeds of tax evasion.

As with Lichtenstein agreement signed in 2009, HMRC is legally restricted by the Agreement’s terms from publishing the information provided.

HL4896

Where there is evidence of collusion in tax evasion or other wrongdoing, the relevant law enforcement agency would assess that evidence and decide whether to pursue an investigation.

HMRC received the data from the French in April 2010 under very strict international treaty conditions, which limited its use to tax purposes only and prevented HMRC from sharing the data with other law enforcement authorities for investigating other potential offences.

HMRC first asked for the conditions to be relaxed in August 2010. Following a number of more recent representations, the French authorities gave written confirmation on 23 February 2015 that they were lifting restrictions on the use and sharing of the data with other law enforcement agencies and regulators for the purpose of investigating criminal offences.

As a result, HMRC has recently held a multi-agency meeting to discuss how the stolen HSBC Suisse data can be shared with them.

The below Parliamentary question was asked by Lord Myners on 2015-02-10.

To ask Her Majesty’s Government what regulatory actions were taken in the United Kingdom in connection with HSBC as a consequence of the fines imposed in the United States in response to its involvement in money laundering on behalf of Mexican drug cartels.

Lord Deighton

I can confirm to the Noble Lord that the information I provided him in response to his written question answered on 17th June 2013 remains accurate:

US investigations and enforcement action on HSBC focused on their subsidiaries in the US. The Financial Conduct Authority (FCA) has no direct supervisory remit over these HSBC entities.

However, in conjunction with the action taken by the US, the (then) FSA, as lead regulator for the HSBC Group globally, made a number of requirements of HSBC Holdings plc, designed to ensure that all parts of the HSBC Group are compliant with the relevant legal and regulatory requirements across the Group to prevent similar failings occurring in future.

This included requiring a committee of the HSBC Board to oversee matters relating to anti-money laundering, sanctions, terrorist financing and proliferation financing; requiring the Group to revise its policies and procedures to ensure that all parts of the HSBC Group are subject to standards equivalent to those required under UK requirements; HSBC employing an independent monitor to oversee the Group’s compliance with UK anti-money laundering, sanctions, terrorist financing and proliferation financing requirements and to provide independent reporting to the HSBC Board committee and regulators. HSBC Holdings was also required to appoint a Group Money Laundering Reporting Officer (MLRO), with responsibility for ensuring that systems and controls are in place across the Group.

The FCA is closely monitoring the implementation of these requirements by HSBC.

The below Parliamentary question was asked by Lord Myners on 2015-02-10.

To ask Her Majesty’s Government whether Lord Green of Hurstpierpoint was made aware of the information forwarded to them by the government of France on alleged tax evasion made possible by HSBC.

Lord Deighton

Due to the longstanding legal requirements for taxpayer confidentiality, Ministers are not made aware of invidual tax cases. At no point were Ministers made aware of any suggestion of wrong doing by HSBC itself.

The below Parliamentary question was asked by Lord Myners on 2015-02-10.

To ask Her Majesty’s Government what actions they plan to take in connection with bankers who colluded in tax evasion or oversaw those perpetrating collusion.

Lord Deighton

HL4893

Under the Swiss Agreement HMRC received a list of the top 10 destinations to where funds were moved in the period before the Agreement came into force. They are using this information together with information from compliance work to follow the proceeds of tax evasion.

As with Lichtenstein agreement signed in 2009, HMRC is legally restricted by the Agreement’s terms from publishing the information provided.

HL4896

Where there is evidence of collusion in tax evasion or other wrongdoing, the relevant law enforcement agency would assess that evidence and decide whether to pursue an investigation.

HMRC received the data from the French in April 2010 under very strict international treaty conditions, which limited its use to tax purposes only and prevented HMRC from sharing the data with other law enforcement authorities for investigating other potential offences.

HMRC first asked for the conditions to be relaxed in August 2010. Following a number of more recent representations, the French authorities gave written confirmation on 23 February 2015 that they were lifting restrictions on the use and sharing of the data with other law enforcement agencies and regulators for the purpose of investigating criminal offences.

As a result, HMRC has recently held a multi-agency meeting to discuss how the stolen HSBC Suisse data can be shared with them.