Parliamentary approval for financial costs or for charges imposed
476 This Bill is a bill brought in on ways and means resolutions, which means that ways and means resolutions are required to authorise the Bill as a whole. Generally, a ways and means resolution is required where a Bill creates or confers power to create new charges on the people (broadly speaking, new taxation or similar charges). The provisions in this Bill create new charges to import duty, provide for a power to create a new charge to export duty, make changes to the VAT and excise regimes in connection with the withdrawal of the UK from the EU, and make provision in relation to subordinate matters which are incidental to these things. All of the provisions in this Bill are authorised by ways and means resolutions.
477 Among the resolutions that have been passed in relation to this Bill is a money resolution. A money resolution is required where a Bill gives rise to, or creates powers that could be used so as to give rise to, new charges on the public revenue (broadly speaking, new public expenditure). In this Bill, among other things, the money resolution covers expenses which might be incurred by public bodies under regulations under clause 11 (which deals with the establishment and management of quotas in relation to import duty). It allows any fees received by a public authority to be paid into the Consolidated Fund (for example, fees received in respect of licences granted under clause 11 or similar provision made by clause 13), and it also authorises public expenditure in relation to the Trade Remedies Authority's exercise of functions under Schedules 4 or 5.
Compatibility with the European Convention on Human Rights
478 Section 19 of the Human Rights Act 1998 requires a Minister in charge of a bill to make a statement about the compatibility of the Bill with the Convention Rights (as defined by section 1 of that Act). The Chancellor of the Exchequer has made the following statement:
ʺIn my view, the provisions of the Taxation (Cross-border Trade) Bill are compatible with the Convention rightsʺ.
479 Parts 1 and 3 engage article 1 of protocol 1. However these provisions do not constitute an infringement of this right as this is an exercise of the State’s right to raise taxes in accordance with the law and falls within the wide margin of appreciation accorded to the State in the area of taxation. These provisions pursue the legitimate aims of establishing a UK Customs regime, securing the payment of tax and promoting the public interest in ensuring fair competition in the domestic market and is proportionate to those aims.
480 Clauses j404 and j102 and j111s create new criminal offences and therefore engage article 6. These offences, which are necessary in order to ensure compliance with certain aspects of the new Customs regime, do not constitute an interference with this right as the article 6 protections are secured. In particular, these offences are not retrospective, and a person that is charged with any of these offences will have the right to a fair and impartial trial in the criminal courts of the United Kingdom and will have the opportunity to make any case known.
481 Part 3 makes consequential amendments to penalty provisions for non-compliance, which may be criminal in nature and therefore engage article 6. However, these provisions do not constitute an interference with this right as the article 6 protections are secured. Among other things, the provisions are not retrospective, the penalty can be appealed to an independent Tribunal, and HMRC have established procedures for dealing with penalties that are criminal in nature in terms of notifying people of their rights.
482 Provisions in parts 1, 3 and 4 will allow the disclosure of information by HMRC which could include personal information capable of identifying individuals. Article 8 is therefore engaged. However, these provisions constitute a necessary and proportionate interference with article 8 and one that is capable of being made by the UK within its margin of discretion. In particular, sharing information relating to Customs duty, VAT and excise is necessary to collect, administer and enforce these taxes, and the provision made by these clauses is proportionate to that aim. Further, there are various safeguards built in to the legislation. For example, there are restrictions on the type of information that may be disclosed and the purpose for which information may be disclosed.
483 Provisions in parts 1, 3 and 4 will require the disclosure of information to HMRC, which may in certain circumstances interfere with article 8. To the extent that provisions in the Bill engage article 8 they constitute a necessary and proportionate interference with the rights protected by that article and one that is capable of being made by the UK within its margin of discretion. In particular, requiring the disclosure of certain personal information to HMRC is necessary to collect, administer and enforce Customs duty, VAT and excise duties and the provision made by these clauses is proportionate to those aims.
484 The Bill contains numerous regulation making powers, all of which are compatible with Convention rights and can clearly be exercised in a Convention compatible way. Regulations made pursuant to these powers may engage articles 6, 8 and 14 and article 1 of protocol 1. The question of the compatibility of regulations with Convention rights will be considered when the powers are exercised.